Analysis of Airline Results

Actual operating statistics for the three months ended June 30 in a Continental Airlines quarterly report follow:


Current Year Preceding Year
Revenue passengers carried 946,603 1,044,697
Revenue- passenger-miles (000s)* 549,179 577,071
Scheduled aircraft miles flown 9,472,766 8,595,308
Available seat- miles (000s) 971,028 839,720
Passenger load factor 56.6% ?
Yield per revenue-passenger-mile $ ? $ .0884

• A revenue-passenger-mile is 1 passenger carried 1 mile. For example, 2 passengers carried 800 miles would be 1,600 revenue-passenger-miles.
• Total revenue divided by revenue-passenger-mile.

The president of Continental commented:
“In the second quarter, airline revenues were nearly $64 million, a 25.6% increase compared with the preceding year. Revenue-passenger-miles, however, declined 5%, primarily as a result of weakened economic conditions. Meanwhile, the yield per passenger-mile increased 32% as a result of several fare increases made to counter spiraling costs.”

1. a. Compute the total passenger revenue in the second quarter of the preceding year.
1044697× 577,071= 602,864,342,487

b. Also compute the passenger load factor.
(Revenue- passenger-miles / Available seat- miles) × 100
(577,071/ 839,720) 100 = 68.7 %

2. Compute the yield per revenue-passenger-mile in the current year.
Total passenger revenue = 946603× 549179 = 519,854,488,937
Total passenger revenue generated / rpm
519,854,488,937/ 549,179= 946603

3. Assume that variable costs during the current quarter were 5cents per revenue-passenger mile. Also assume that the yield per revenue-passenger-mile was unaffected by the increase in the load factor. Suppose the passenger load factor had increased from 56.6% to 57.6%;

• Compute the increase in operating income that would have been attained.

Answers

Answer 1

Third quarter net income of $446 million, or $.73 per diluted share, driven by a $763 million offset of salaries, wages, and benefits expenses related to the receipt of Payroll Support Program (PSP) proceeds under the American Rescue Plan Act of 2021Excluding special items1, third quarter net loss of $135 million, or $.23 loss per diluted shareThird quarter operating revenues of $4.7 billion, down 17.0 percent compared with third quarter 2019Ended third quarter with liquidity2 of $17.0 billion, well in excess of debt outstanding of $11.2 billion

Explanation:


Related Questions

You are working for an organization that provides clean water technology to communities in Africa. They have never worked in Malawi, but want to and need to understand how consumers source water, how they prepare it (sterilize or clean it), and how they use it. You know that a study was done on water sources, water preparation, and water uses in Kenya. ● What type of research would the Kenya study be considered and how would you go about validating its findings for Malawi (a different country in Africa)? How would your answer change if your organization was considering a community in a remote area of Nicaragua?

Answers

The research type of the Kenya study would be qualitative, and to validate its findings in Malawi it would be necessary to apply new research in the region.

What is qualitative research?

It corresponds to an approach that considers subjective aspects of human behavior and society, related to cultural and historical individualities of a population.

Therefore, according to the analysis of the case, it would be essential that for each challenge in the search to understand the behaviors of a different country in relation to water, a new qualitative research was developed.

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Explain the factor that determine an individual personality​

Answers

Answer:

Heredity, physical environment, culture and particular experiences


From what part of income should someone take savings?

Answers

Answer:

At least 20% of your income should go towards savings.

If two adjacent columns are selected and then sorted, the left-most column is

the primary sort.
the secondary sort.
the primary filter.
the secondary filter.

Answers

Answer:

The first sort

Explanation:

QBF sorts the field with the lowest number first. The first sort is called the primary sort. If you want the field displayed in descending order, follow the sort priority number by d (or D). For ascending order, you can enter a (or A) or no letter, because ascending order is the default.

Human resources managers are a link between company managers and other workers.
A.
True
B.
False

Answers

Answer:

A number True is the answer

what's the best way to calculate ending inventory if using FIFO method?

Answers

Answer:

According to-

Explanation:

According to the FIFO method, the first units are sold first, and the calculation uses the newest units. So, the ending inventory would be 1,500 x 10 = 15,000, since $10 was the cost of the newest units purchased.

identify two components from the business environment and support them with one example of each​

Answers

Business environment is simply the environment in which the business operates.

It includes the industry situation, the customers, the suppliers, the demand and supply of products of business, competitive position, government regulations, and everything that affects the business, directly or indirectly.

Amanager formally represents the orgaanization unit in all matters is _role of amanager
A figurehead B leader c liaison D informational e none

Answers

Answer:

The correct answer is B.

Explanation:

An individual given a place of ostensible initiative however having no real power.

If you’re working with a group of people, or need the support of the students, you’ll need to learn how to create an argument and present it in an effective way.

A. True
B. False

Answers

It’s true because when you are presenting in a group. You need to make sure you’re prepared for whatever someone tries to throw at you within the argument and to also get your audience more intrigued in the argument

Your company is planning to borrow $500,000 on a 10‐year, 10 percent, annual payment, fully amortized term loan. What is the annual payment?

Answers

your payment would be 10 percent of 500000s plus

Which of the following is one way the Federal Reserve Bank serves the government?
a. making loans to the government
C. minting coins for the government
b. selling government securities
d. financing state government projects

Answers

Answer:

making loans to the government

Answer:selling government securities

Explanation:Correct on Grad Point

Sharon wants to set aside funds to take an around the world cruise in 4 years. Sharon expects that she will need $26000 for her dream vacation. If she is able to earn 9% per annum on an investment, how much will she have to set aside today so that she will have sufficient funds available?

Answers

The present value to be kept aside by Sharon to have sufficient funds will be $18,419.

What is present value?

The current value of any sum of money, which is certain to be gained in the future over compounded interest on such investment, is known as present value. Using given information, it can be calculated as,

[tex]\rm Present\ Value= Future\ Value\ x\ \dfrac{1}{(1+r)^n}\\\\\rm Present\ Value= 26000\ x\ \dfrac{1}{(1+0.09)^4}\\\\\rm Present\ Value= \$18419[/tex]

Hence, the present value of the annuity of $26000 in 4 years has been calculated above.

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Which position or group of stakeholders has the most power in your organization or one with which you are familiar?

Answers

The group of stakeholders with the most power in any organization is the Board of Directors (Management).

What is the Board of Directors?

The board of management or directors obtains its power through a formal position as appointed by the stockholders.

The role of the Board of Directors in a company includes:

Set strategyOversee managementHire the CEO or general manager Assess the overall direction and strategy.

Thus, the group of stakeholders with the most power in any organization is the Board of Directors (Management).

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Given the above predicted changes in quantity demanded by region, use the stay even analysis %ΔQd = %ΔP/(%ΔP +margin): Can you raise prices by 7% in any of the regional markets? State your conclusion and then show the all the steps supporting your conclusion. Note: Assume from problem 3 on Problem Set 1 that the optimal prices by region are: Southwest region $311; Upper West region $278; and Northeast $240. Please write your conclusion case study style in the dialogue box.

Answers

Based on the stay even analysis, it can be concluded that a 7% increase in price would lead to a decrease in the quantity demanded.

How to explain the stay even analysis?

The stay even analysis %ΔQd = %ΔP/(%ΔP +margin) can be used to determine if a price increase of 7% would result in a decrease in quantity demanded that is less than the increase in quantity demanded.

The optimal prices by region are Southwest region $311; Upper West region $278; and Northeast $240. The stay even analysis for the Southwest region is as follows:

%ΔQd = %ΔP/(%ΔP +margin)

= 7%/7.5% = 93.33%.

This means that a 7% increase in price would result in a decrease in the quantity demanded.

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Net loss can be thought of as a __________ to the Capital account.

Debit
Credit

Answers

Answer:

The answer is Credit.

Explanation:

Net loss can be thought of as a Credit to the Capital account.

Respond to the following prompt in a post with a minimum of 250 words, then comment on at least TWO other posts. Respond to the posts indicating your agreement or disagreement with their position and why. Feel free to bring in additional references to these reply posts. Find a current news article or video (within the past 12 months) that describes some government intervention in the economy with the intent of controlling prices. Identify the parties who benefit and those who are or will be hurt by this intervention. What unintended consequences will likely or have occurred as a result of this intervention. What is your opinion on this matter? Why? Include your thoughts and the link to the article in your post.

Answers

Government, usually intervene in the foreign exchange market mainly for preventing violent fluctuations in the exchange rate. A foreign currency is sold when it is overvalued and bought when it is undervalued. As the US works to correct its deficit balance of payment account, devaluing the dollar seems like a feasible option. Dollar devaluation will help to increase the demands of American goods in the international market and supports the current policy initiatives.

What is intervention?

Intervention is an act of taking action about something in order to have an effect on its outcome.

Intervention strategies mean a plan for staff action that outlines methods, techniques, cues, programs, or tasks that enable the child to successfully complete a specific goal.

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Which option is not available in the Presenter view of a presentation?

Next Slide Preview
Pen/Laser Pointer tools
Open Slide Show
Navigation Controls

Answers

Answer:

next slide preview

Explanation:

next slide preview

Easy question 20 points……..

Answers

Answer:

its b

Explanation:

When a persons actions make another person look bad

(discuss the five value added role (economic benefits) of distribution centers?)

Answers

A warehouse or other specialized building, regularly equipped with refrigeration or air conditioning, which is stocked with goods to be delivered to retailers, wholesalers, or immediately to consumers is known as a distribution center for a set of merchandise.

What are the economic benefits of distribution centers?

Distribution facilities are designed to maximize performance on the subject of the:

IntakeProcessing, Storage,Distribution of goods

Thus, As a result of the establishment of distribution centers, less cash is wasted purchasing transient storage, coping with stockouts, or dropping clients because of not being on time or incomplete orders.

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What is the definition of
continuous compounding?

Answers

Answer: Continuous compounding is the mathematical limit that compound interest can reach if it's calculated and reinvested into an account's balance over a theoretically infinite number of periods. While this is not possible in practice, the concept of continuously compounded interest is important in finance.

Explanation:

Employee earnings records for Slaymaker Company reveal these gross earnings for four employees through the pay period of December 15.

J. Seligman $93,500 L. Marshall $115,100
R. Eby $113,600 T. Olson $140,000
For the pay period ending December 31, each employee’s gross earnings is $4,500. The FICA tax rate is 7.65% on gross earnings of $132,900.

Instructions

Compute the FICA withholdings that should be made for each employee for the December 31 pay period. (Show computations.)

Prepare payroll register and record payroll and payroll tax expense.

Answers

Based on the information, it can be inferred that Olson must pay $11,054.25 as FICA Tax.

How to calculate the FICA withholding of each employee?

To calculate the FICA withholding of each employee it is necessary to add the $4,500 earned by the employees in the pay period of December 31:

$93,500 + $4,500 = $98,000$113,600 + $4,500 = $118,100$115,100 + $4,500 = $119,600$140,000 + $4,500 = $144,500

Next, we need to calculate 7.65% of values over $132,900, meaning only Olson's income tax would apply.

To calculate 7.65% of Olson's gross profits it is calculated as shown below.

$144,500 ÷ 100 = $1,445

$1,445 × 7.65% = $11,054.25

Based on the above, the tax Olson must pay is $11,054.25

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What can a borrower do to take control of their debt?
A. The borrower can create a payment plan.
B. The borrower can make only minimum payments.
C. The borrower can pay bills selectively.
D. The borrower can apply for more credit cards.

Answers

The answer is A: the borrower can create a payment plan

Answer:

the Answer is A. The borrower can create a payment plan.

Explanation:


Instructions: Place the steps involved in developing a corporate code of ethics in order from first to last, with "1" being the first step and "6" being the last.
Rank the options below.
Communicate to Outsiders: The ethics program must be communicated to outsiders.
Employees: Employees must understand that expectations for ethical behavior begin at the top and all employees must act
accordingly.
Enforcement: The ethics code must be enforced with timely action when rules are broken.
Ethics Office: Management must set up an ethics office with which employees can communicate anonymously.
Management Support: Top management must adopt and unconditionally support an explicit code of corporate conduct.
Training: Managers and others must be trained to consider the ethical implications of all business decisions.

Answers

The steps in developing and implementing a Code of Ethics in a corporation is:

Management Support: Top management must adopt...Employees: Employees must understand that expectations...Training: Managers and others must be trained...Ethics Office: Management must set up an ethics office...Communicate to Outsiders: The ethics program...Enforcement: The ethics code must be enforced...

How do you implement a corporate code of ethics?

Firstly, the top management must adopt the code and support it. Employees also need to understand what the code expects of them.

To ensure adherence, managers should be trained in the code and an ethics office should be set up to monitor it.

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If the total assets to equity ratio of a company is increasing, it is possible that:
A.The company is increasing the use of debt and getting higher financial leverage
B.The company is decreasing the use of debt and getting lower financial leverage
C.The company is decreasing its efficiency in operations
D.The company is increasing its efficiency in operations

Answers

When the proportion of the total assets to equities ratio increases, it is an indication that the company is less dependent on the debts of creditors.

What is assets to equity ratio?

The assets to equity ratio represents the number of assets earned by an organization with the use of debt resources. If such ratio increases, the use of debts is lowered by the company.

An increase in the assets to equity ratio also indicates that the company is operating at very low risks of losing money, acquired through debt mode.

Hence, option B holds true regarding the assets to equity ratio.

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National cement factor is engage in the production of cement, and the company has birr 10,000,000 birr. Further, the production function of the company is given by Q = 20L1/2K1/2, and the unit cost of labor and capital are birr 100 and 50 respectively. Given the above information perform the following questions. Determine the type of returns to scale that the company production function has? Find the optimal level of labor and capital, and maximum output? Find the level of profit if the unit price of 100 KM of cement is birr 400?​​

Answers

From the equation given, it is clear that the company's production function has a constant returns to scale.

What is a production function?

A production function refers to an equation that captures the highest number of output that can be manufactured with a limited or given set of input.

To determine whether a production function has growing, decreasing, or constant returns to scale, multiply each input with a positive constant (t > 0), then see if the entire production function is multiplied with a number that is higher, lower, or equal to that constant.

Recall the the production function is given as:

Q = 20L1/2K1/2; and

Unit cost of Labor and Capital are 100 and 50 respectively. Plugging the Unit costs of Labor and Capital respectively, we have:

Q = (20 * 100)/ (2 *50/2)

= 2000/50

Q = 40

Hence the production function of the company has a constant returns to scale.

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PLEASE HELP WITH THIS
The United States government is in debt. But is this a problem? After all, can’t the federal government simply print more money without repercussions? Unfortunately, the solution is not that simple.

Your first task is to identify the current US national debt. Next, identify at least three possible implications if the national debt is not reduced. Lastly, provide at least three examples in which the national debt can be reduced.

Answers

The United States government is in debt. But is this a problem? After all, can’t the federal government simply print more money without repercussions? Unfortunately, the solution is not that simple. What could happen they didn't pay it off? The government not paying off there debt could increase interest rates, which could then increase prices and contribute to inflation. The stock market would also suffer if they don't pay it off. Ways they could reduce the national debt would be, raising taxes,  slashing government expenses, and cutting military expenditures.

(I didn't know if your first sentence was your intro or not, sorry! you may take it out if not. Hoped this helped!)

Inflation may result from rising interest rates brought on by the government's failure to pay down its debt. If they didn't pay it off, the stock market would also suffer. Raising taxes, decreasing government spending, and reducing military spending are all possible ways to lower the national debt.

What do you mean by Debt?

A debt is an amount of money that has been borrowed for a set period of time and must be repaid, plus interest. The borrower's creditworthiness affects both the debt's size and its acceptance. There are various debt categories, and they change depending on the borrower's needs.

The federal government's debt, which includes public debt, federal trust funds, and numerous government accounts, is referred to as the "national debt." The national debt, to put it simply, is the sum of the government's debts to both itself and to others. This represents the total deficit that the government has racked up over time.

Therefore, Rising interest rates brought on by the government's failure to pay off its debt could cause inflation.

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A down payment is:
O
a) The monthly payment you make towards your mortgage.
Ob) Part of your closing costs.
c)
The initial sum of money that you pay toward your house.
A homeowner's final mortgage payment.
d)
Submit

Answers

Answer:

C

Explanation:

Down payment is something that you pay upfront before getting anything.

In 2019, your father gave you a gift of property with a fair market value (FMV) of $75,000. His adjusted basis was $50,000. The gift tax paid was $7,440. What is your basis in the property?


A.
$75,000

B.
$57,440

C.
$53,100

D.
$50,000

Answers

Answer:

your basis is 57440

Explanation:

just take the basis of the father and plus the gift tax

How would you enter the following into a adjusted trial balance?
1. A physical count reveals only $500 of roofing supplies on hand.
2. Depreciation for March is $247.
3. Unearned revenue amounted to $180 at March 31.
4. Accrued salaries are $600.

Answers

The following items will be listed on the Adjusted Trial Balance as indicated:

Adjusted Trial Balance as of March 31

1. Debit Supplies on Hand with $500

2. Debit Depreciation Expense with $247

3. Credit Unearned revenue with $180

4. Credit Accrued Salaries with $600

What is an adjusted trial balance?

An adjusted trial balance is the trial balance prepared after making adjustments for:

PrepaymentsUnearned revenueAccrued expenses and revenueNon-cash expenses, e.g. depreciation.

Thus, preparing an adjusted trial balance helps to ensure that the accounts are prepared in agreement with the matching concept and the accrual basis of generally accepted accounting principles.

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This type of investment typically has a greater long-term rate of return than a savings account.
A. Checking Account
B. Credit Union
C. Credit Card
D. Stock

Answers

Answer:

checking account its the answer if its incorrect please let me know cuz its in ny book like that too so yeah

Answer: D. Stock

Explanation:

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