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City University Of New York Operations And Supply Chain Management Assignment Help - Bordellet Air Service

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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