Project #40752 - make an break even chart and answer the question.

Q:  How many flight hours would your plane need to fly, given these expenses and costs, before it would Break-Even?
Use a rental rate of $100/hour.  (assume that Hobbs and Tach hours are the same, for this problem).

Once we have solved for # of flight hours, we can then calculate how long it will take to get to that point, i.e., how many hours each month, on average, must we fly the plane to B-E or become profitable.  But we will do that later.

Below are some costs for a flying club that operates a single Cessna 152.

Fuel per flight hour:   $36

Oil per flight hour:     $  2

Maintenance :    annual inspection  $1,200 

    100 hours of operation inspections: $800

Tie-down spot:  $150 per month

Aircraft monthly purchase or lease payment:  $700/mo.

Reserves for new engine:  $10/hour

Telephone scheduling & billing services:  $150/mo.

Hull and Liability insurance:   $350/mo.

Miscel. variable expenses:              $100/mo.

 

Subject Mathematics
Due By (Pacific Time) 09/21/2014 10:00 pm
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