Case Name :      High Point Aviation: Operating Breakevens

Authors :           Mark E. Haskins

Source :             Darden School of Business

Case ID :           UV5245

Discipline :        Accounting

Case Length :    04 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

A couple wants to start a small flight charter company to serve the mining, oil, scientific, and wilderness adventure clients of northern Canada but worry that their thin financial base necessitates a sizable scale of flight operations during their first year. If a substantial revenue stream was slow to develop, or expenses were too high, their first year might be their last year-they had no financial slack. The fundamental question is, given their preliminary budget figures for the coming year, what level of revenue-generating flight miles did they need to just break even?