MBAA 517 ASSIGNMENTS

MBAA517:

In this module you will have an opportunity to demonstrate your understanding of cost, volume, profit, and their application in the aviation industry. For this Case Study complete the four requirements below:

1. ABC Passenger Service Airlines has determined the breakeven point, both in dollars and passengers, necessary to breakeven. Explain how an increase or decrease of passengers from the breakeven point would affect the profit or loss of the firm.
2. You are a management analyst for XYZ aircraft manufacturing company. Your company currently manufactures and sells four different types of aircraft. Historically, each aircraft type constitutes 25% of the total revenue. For each aircraft type the unit contribution margin, expressed as a per cent of sales, is different. If this year the sales mix is different than the historical average, explain what affect this would have on the breakeven point?
3. Two companies have the same fixed expenses, unit variable expense, and profits. However, one company sells its products for a lower price. Explain what might be the reason(s) they do this?
4. Refer to Problem 7-42 at the end of Chapter 7. Build or use an existing Excel Spreadsheet and complete requirements 1 and 3. The spreadsheet must accompany the submission.

For this case study, you will demonstrate your ability to correctly calculate the problem and demonstrate creative thinking by analyzing the case and answering the questions that are intended to interpret the data. Please refer to the case study section of the syllabus for additional guidance and your Case Study Rubric to review the criteria that will be used to evaluate and grade your submission. This activity is due the last day of this module. If you have chosen to complete this activity as a group assignment (optional), one member of the group will submit the assignment. Include the names of all participating group members in the top left corner of the first page of the document.

PROBLEM 7-42 FROM MY BOOK.

AS FIRST ATTACHMENT