Night flights is preparing a contribution margin report segmented by route. the following information is available: miami/la atlanta/ new york new york/ chicago average ticket price per passenger $1,250 $900 $750 total passengers served 5,400 8,800 12,200 total miles flown 190,000 176,000 97,600 the variable costs per unit are as follows: fuel $25 per mile wages $45 per mile food/beverage service $7 per passenger selling $70 per passenger what is the contribution margin ratio for the new york/chicago route (to the closest tenth of a percent)?

The contribution margin is $1.244.000

Explanation:

The contribution margin  is the difference between the incomes and the variable cost

CM=Sales (incomes)- variable cost

In the case New York/ Chicago

Ticket price        $750        

Passengers        12000        

Miles flown        97600        

Incomes= Ticket price*Passengers=$750*12000=$9.000.000

To get the Variable cost                

Fuel ($25 per mile)= cost * miles=25*97600=2440000

Wages ($45 per mile) = $45*97600=4392000

Food/beverage service ($7 per passenger)=7*12000=84000

Selling ($70 per passenger)=70*12000=840000

      TOTAL:         7756000

CM=Sales (incomes)- variable cost =$9.000.000

-7756000=$1.244.000

answer; niosh, the national institute for occupational safety and health;

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