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4. In Airline fare sales will reduce the yield. You can expect yield per passenger mile to drop about 10% for each month of fare sale. Calculate the break-even load factor of CAST is $0.21, regular fare is $0.35 per mile, and you are offering a two-month fare sale. 5. What impact might a 4% increase in compensation have on the break-even load factor for an airline

Sagot :

The breakeven load factor that can be deduced from the information given is $0.48.

How to calculate the breakeven load factor

In this case, the CAST is $0.21, and the regular fare is $0.35 per mile. Therefore, the breakeven point will be:

= Cost / Yield

= 0.21/0.35

= 0.60

When the yield per passenger drops 10% for 2 months fare, the load factor will be:

= 0.60 × (10% × 2)

= 0.60 × (0.10 × 2)

= 0.60 × 0.20

= 0.12

Therefore, the breakeven load factor will be:

= $0.60 - $0.12

= $0.48

Learn more about breakeven on:

https://brainly.com/question/21137380

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