Is staff salary a fixed cost?
Any employees who work on salary count as a fixed cost. They earn the same amount regardless of how your business is doing. Employees who work per hour, and whose hours change according to business needs, are a variable expense.
How much does it cost to fly a 747 per hour?
The average airborne operating cost of a Boeing 747-400 is between $24,000 and $27,000 per hour, around $39.08 to $43.97 per mile, using approximately $15,374 in fuel per hour.
Can you put jet fuel in a car?
Jet fuel can actually be used in cars, but only in diesel engines. Kerosene jet fuel and diesel are actually similar enough to allow for cross-functionality and would provide a similar performance.
How are implicit costs calculated?
Implicit costs are more subtle, but just as important. It means total revenue minus explicit costs—the difference between dollars brought in and dollars paid out. Economic profit is total revenue minus total cost, including both explicit and implicit costs.
Why is it reasonable to think of normal profit as a type of cost to the firm?
So, we can think of normal profit as being the minimum return, or cost, that is necessary to keep the firm running. The size of the firm is fixed in the short run. In the long run, all the resources are variable. That is, the quantities of all resources can change to alter the firm’s level of output.
Is jet fuel the same as kerosene?
Jet Fuel and Kerosene Are the Same Because they contain the same classes of hydrocarbons, kerosene, jet fuel and diesel are similar products.
What is implicit statement?
An IMPLICIT statement specifies a type and size for all user-defined names that begin with any letter, either a single letter or in a range of letters, appearing in the specification. An IMPLICIT statement does not change the type of the intrinsic functions. A program unit can contain more than one IMPLICIT statement.
What percentage of airline costs are fuel?
10% to 12%
How much does it cost to fill a 747 with fuel?
Seats to fill A 747 can seat 380 to 560 people, depending on how an airline sets it up. A full one is a moneymaker. But an airline that can’t fill all the seats has to spread the cost of 63,000 gallons of jet fuel — roughly $200,000 — among fewer passengers. The jets also are too big for most markets.
Is depreciation an implicit cost?
Implicit costs also include the depreciation of goods, materials, and equipment that are necessary for a company to operate. (See the Work It Out feature for an extended example.) These two definitions of cost are important for distinguishing between two conceptions of profit, accounting profit, and economic profit.
How much fuel does a 747 burn on takeoff?
According to the Boeing website, the 747 burns approximately 12 litres per kilometre. 747 can carry as many as 568 people. It can carry up to 238,840 litres of fuel.
Is rent a fixed expense?
Fixed costs remain the same regardless of whether goods or services are produced or not. The most common examples of fixed costs include lease and rent payments, utilities, insurance, certain salaries, and interest payments.
Can you burn jet fuel in a diesel engine?
Yes most Diesel engines can burn jet fuel. Diesel and Jet fuels have similar flashpoints which are higher than gasoline/petrol. Yes most Diesel engines can burn jet fuel.
How long does it take to fuel a 747?
about 50 min
What is implicit cost example?
Examples of implicit costs include the loss of interest income on funds and the depreciation of machinery for a capital project. They may also be intangible costs that are not easily accounted for, including when an owner allocates time toward the maintenance of a company, rather than using those hours elsewhere.
How much does it cost to fly a 747?
Based on 450 annual owner-operated hours and $4.25-per-gallon fuel cost, the BOEING 747-400 has total variable costs of $7,/b>, total fixed costs of $/b>, and an annual budget of $8,/b>. This breaks down to $/b> per hour.
How much does a private 747 cost?
The basic Boeing 747 costs around $100 million, but another $130 million were invested in order to create this luxurious private jet. The living room, bedroom, and bathroom are all decorated with gold and crystal and the washbasins in all the bathrooms are made out of solid gold.