W3 D2 CVP and the Airline Industry

READ – Chapter Five – Cost volume profit

WRITE – a minimum of 200 words addressing the following questions:

  • We’ve all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, “Airline Industry Stock Outlook – July 2016 (Links to an external site.)Links to an external site..” Identify three factors that are affecting airline company’s ability to break even. For each of your factors, discuss how these have an impact on the breakeven (contribution margin, fixed costs, variable costs, a combination, etc.), and what happens if these factors increase or decrease.

Reference

Fact Sheet-Fuel. (n.d.) Retrieved February 01, 2018, from http://www.iata.org/pressroom/facts_figures/fact_sheets/Pages/index.aspx (Links to an external site.)Links to an external site.

Zacks Investment Research. (2011). Airline Industry Stock Outlook – July 2016. Retrieved from https://www.zacks.com/commentary/84559/airline-industry-stock-outlook—july-2016 (Links to an external site.)Links to an external site.

 

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