Академический Документы
Профессиональный Документы
Культура Документы
Ajax Airlines Financial data Year 1 7200 2400 1000 3200 6600 600 200 200 200
Year 2 8800 2900 1100 3900 7900 900 230 335 335
Balancesheet Year 1 Current assets 2100 Property and equipment 6300 Total assets 8400 Current liabilities 2000 Long term debt 3000 Equity 3400 Total liabilities 8400 ROE Asset/Equity - Leverage revenue/asset - ATO NI/Revenue - NI Margin
5.88%
ATO increased, NI Margin increased and Leverage is stable.. So performance is reasonably gud.
Revenue per seat mile Expense per seat mile Salaries and benefits aircraft fuel Fleet operations cost Operating profit per seat mile Contribution per seat mile BREAK-EVEN Break even capacity
0.126
0.135
Reveneue - Variable Cost.. Note: here onl BEP = FIXED COST / CONTRIBUTION P Contribution is the surplus which would he S.P - V.C = Contribution
seat increase is seen,.. Inspite of this volume increase has happened.. So it means, people have agreed to price rise
e - Variable Cost.. Note: here only aircraft fuel is variable cost. XED COST / CONTRIBUTION PER UNIT on is the surplus which would help the company to cover is fixed cost.. IF contribution is equal to Fixed cost, its BREAKEVEN = Contribution
d to price rise
Sales Expenses Tickets and reservations Aircraft operations Customer service Total expenses Assets (Value chain) Tickets and reservations Aircraft operations Customer service Total
Costs: Tickets and reservations Aircraft operations Customer service Total expenses Assets Tickets and reservations Aircraft operations Customer service
Year 1 Year 2 7200 8000 300 3900 2400 6600 1000 5300 6300
Per seat mile 1987 0.005 0.068 0.042 0.116 0.018 0.093
Analysis of this case: Because ticketing and reservations has increased, i.e. investment in automation, this has led to increased profit Thus the strategy has paid off and value addition has happened, which may be duplicated by competitors
s increased, i.e. investment in automation, this has led to increased profit e addition has happened, which may be duplicated by competitors