Discussion: 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." 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.