Final answer:
The increase in IRT's average daily revenue, if the time for preventive maintenance for all planes is reduced by 1 day, is USD 312,000. This figure was calculated by determining the annual revenue increase for regional and large jets due to the reduction in maintenance days and converting this to an average daily increase.
Step-by-step explanation:
We are tasked with calculating the increase in IRT’s average daily revenue if the time for preventive maintenance for all its planes is reduced by 1 day. First, we must determine the number of regional jets and large jets the airline operates. With a total of 730 planes, 70% are regional jets, which calculates to 511 regional jets (0.70 x 730) and 30% are large jets, which calculates to 219 large jets (0.30 x 730).
Regional jets require 2 routine preventive maintenances per year, and large jets require 3 routine preventive maintenances per year. If each maintenance session is reduced by 1 day, we need to find out the total number of days saved per year for each type of jet and then calculate the corresponding revenue increase per day.
The annual days saved for regional jets: 511 jets x 2 maintenances/year x 1 day = 1022 days/year
Annual revenue increase due to saved days for regional jets: 1022 days/year x USD 60,000/day = USD 61,320,000/year
The annual days saved for large jets: 219 jets x 3 maintenances/year x 1 day = 657 days/year
Annual revenue increase due to saved days for large jets: 657 days/year x USD 80,000/day = USD 52,560,000/year
Total annual revenue increase: USD 61,320,000/year + USD 52,560,000/year = USD 113,880,000/year
To find the average daily revenue increase, we divide the total annual revenue increase by the number of days in a year: USD 113,880,000/year ÷ 365 days/year = USD 312,000/day
Therefore, the increase in IRT’s average daily revenue, if the time for preventive maintenance for all planes is reduced by 1 day, is USD 312,000.