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Boston College Operations And Supply Chain Management Assignment Help - the company reported


Question - PROBLEM 4-5. Break-Even, "W hat If" [LO 3] Michael Bordellet is the owner/pilot of Bordellet Air
Service. The company flies a daily round trip from Seattle's Lake Union to a resort in Canada. In
2010, the company reported an annual income before taxes of $8,084 although that included a
deduction of $70,000 reflecting Michael's "salary."





Revenue ($360 Af— 1,248 passengers)
$449,280

Less costs:
Pilot (owner's salary)
$ 70,000

Fuel (35,657 gallons Af— $4.15)
147,977

Maintenance (variable)
127,920

Depreciation of plane
25,000

Depreciation of office equipment
2,800

Rent expense
40,000

Insurance
20,000

Miscellaneous (fixed)
7,500
= 441,197

Income before taxes
$ 8,083


Revenue ...Read More

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