Fly Fast Ltd operates a small charter plane operation in South West Queensland. The airline provides a fly in fly out service to mining operations in…

Fly Fast Ltd operates a small charter plane operation in South West Queensland. The airline provides a fly in fly out service to mining operations in this area. Currently Fly Fast operates one plane which provides a return service once per day to a large coal mine about two hours flying time away. On arrival at the mine the plane remains on the ground only long enough to pick up passengers for the return journey before flying back to its base. The small plane operated by Fly Fast has a maximum seat capacity of 48. Fly Fast charges $135 one way for all flights. Due to annual holidays during January occupancy loads on the flights are lower during this month and gradually improve over the remaining months. Fly Fast has estimated the following occupancy rates for the first quarter of 2017:January 55%; February 70%; March 85%.

Fly Fast has scheduled flights on 15 days during January, 20 days during February and 25 days during March.


Prepare a budget for sales revenue for the first quarter of 2017 (round up where necessary).

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