Review the PowerPoint attached below. The assignment is at the end.
Below are some costs for having a flying club that operates a single Cessna 152.
Fuel per hour: $30
Oil per hour: $2
Maintenance : Annual inspection $1,200
100 hours of operation periodic inspections: $800
Tie-down spot: $150 per month
Aircraft monthly purchase payments: $700/mo.
Reserve fund for new engine: $10/hour
Telephone scheduling & billing services: $150/mo.
Hull and Liability insurance: $350/mo.
Question: How many flight hours would your plane need to fly, given these expenses and costs, before it would Break-Even?
Use a rental rate of $100/hour. (assume that both the Hobbs meter and Tachometer hours are the identical, for this problem). You hope to average 60 hours of flight time per month. Some months will be better, some worse.
Show all of your work (good and bad) in solving this problem.
Prepare a Break-Even chart or graph to complete the assignment. Show VC, FC and Revenue lines. Keep the dollars on the vertical axis, and the flight hours on the horizontal axis.
When finished, upload your graph/chart and all of your work effort into canvas as either a Word document (.doc) or Adobe PDF (to retain formatting).