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Alpaca Airways flies between two airports within its own country. The plane used has capacity of 125 passengers. A one-way fl

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Answer #1

A) Marginal costs = Direct materials + Direct Labor

= 25 + 20

= 45

B) contribution per flight = Revenue per flight - Marginal cost per flight

= 80 - 45

= 35

C) passengers required to cover fixed costs

= Fixed cost/Contribution per flight

= 4,000/35

= 115 passengers

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