Scribd Logo
Upload

Welcome to Scribd!

  • Ebit 93046500: Sol:-Earning Before Interest and Taxes of B 747 Is More Hence It Should Be Preferred

    Uploaded by

    Arv Dq
    6 views1 page
    This document compares the financial projections of using a Boeing 747 or DC-10 aircraft for four routes. It provides revenue, costs, and income statement projections for each aircraft. The Boeing 747 is projected to have higher earnings before interest and taxes (EBIT) at $930 million compared to $270 million for the DC-10. Therefore, the summary concludes that the Boeing 747 should be preferred.

    Original Description:

    Original Title

    punto 7

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document compares the financial projections of using a Boeing 747 or DC-10 aircraft for four routes. It provides revenue, costs, and income statement projections for each aircraft. The Boeing 747 is projected to have higher earnings before interest and taxes (EBIT) at $930 million compared to $270 million for the DC-10. Therefore, the summary concludes that the Boeing 747 should be preferred.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    6 views1 page

    Ebit 93046500: Sol:-Earning Before Interest and Taxes of B 747 Is More Hence It Should Be Preferred

    Uploaded by

    Arv Dq
    This document compares the financial projections of using a Boeing 747 or DC-10 aircraft for four routes. It provides revenue, costs, and income statement projections for each aircraft. The Boeing 747 is projected to have higher earnings before interest and taxes (EBIT) at $930 million compared to $270 million for the DC-10. Therefore, the summary concludes that the Boeing 747 should be preferred.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    If B 747 is chosen

    five-weekday seating Seat used for No. of operational days Revenue for each route
    trip one-way fare ($) Revenue / weekday
    demand capacity trips in a year per year
    chicago-london-chicago 975 385 385 400 154000 240 36960000
    chicago-london 230 385 230 680 156400 240 37536000
    London-chicago-london 880 385 385 475 182875 240 43890000
    london-chicago 400 385 385 775 298375 240 71610000

    COGS
    five-weekday seating Seat used for No. of operational days Total number of seat oper.cost Operation cost Open cost
    trip KM Travelled Seat per Km
    demand capacity trips in a year in a yr. seat-km in cents in $
    chicago-london-chicago 975 385 385 240 92400 13000 1201200000 2.75 3303300000 33033000
    chicago-london 230 385 230 240 55200 6500 358800000 2.75 986700000 9867000
    london-chicago-London 880 385 385 240 92400 13000 1201200000 2.75 3303300000 33033000
    london-chicago 400 385 385 240 92400 6500 600600000 2.75 1651650000 16516500

    Income statement - B747


    chicago-london-chicago 36960000
    chicago-london 37536000
    london-chicago-London 43890000
    london-chicago 71610000
    Revenue 189996000

    chicago-london-chicago 33033000
    chicago-london 9867000
    london-chicago-London 33033000
    london-chicago 16516500
    Operation cost 92449500

    Gross profit 97546500

    Fixed cost 4500000

    EBIT 93046500

    If DC 10 is chosen

    five-weekday seating Seat used for No. of operational days Revenue for each route
    trip one-way fare ($) Revenue / weekday
    demand capacity trips in a year per year
    chicago-london-chicago 975 235 235 400 94000 240 22560000
    chicago-london 230 235 230 680 156400 240 37536000
    london-chicago-London 880 235 235 475 111625 240 26790000
    london-chicago 400 235 235 775 182125 240 43710000

    COGS
    five-weekday seating Seat used for No. of operational days Total number of seat oper.cost Operation cost Open cost
    trip KM Travelled Seat per Km
    demand capacity trips in a year in a yr. seat-km in cents in $
    chicago-london-chicago 975 385 385 240 92400 13000 1201200000 2.97 3567564000 35675640
    chicago-london 230 385 230 240 55200 6500 358800000 2.97 1065636000 10656360
    london-chicago-London 880 385 385 240 92400 13000 1201200000 2.97 3567564000 35675640
    london-chicago 400 385 385 240 92400 6500 600600000 2.97 1783782000 17837820

    Income statement - DC10


    chicago-london-chicago 22560000
    chicago-london 37536000
    london-chicago-London 26790000
    london-chicago 43710000
    Revenue 130596000

    chicago-london-chicago 35675640
    chicago-london 10656360
    london-chicago-London 35675640
    london-chicago 17837820
    Operation cost 99845460

    Gross profit 30750540

    Fixed cost 3700000

    EBIT 27050540

    Comparison B- 747 DC10


    EBIT 93046500 27050540

    Sol:- Earning before interest and taxes of B 747 is more hence it should be preferred

    You might also like