Solved: What will be the percentage increase in profitability, Finance Basics

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What will be the percentage increase in profitability

Question:

Adventure Airline has revenue of $140 million, fixed cost of $100 million, and variable cost of $38 million, which increases in proportion to revenue. Their Planes are flying 70% full of paying passengers. If they reschedule and achieve 75% of the seats full of revenue paying passengers at the same fare, what will be the percentage increase in profitability?

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Finance Basics: What will be the percentage increase in profitability

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