Question

Airbus invested €10.2 billion developing its A380, which is capable of carrying 800 passengers. The plane has a list price of €206 million. Airbus stated that the company would break even when 249 units of A380s were sold. Assuming the break-even sales figure given is the cash flow break-even, what is the cash flow per plane?

a. €40,963,855
b. €49,514,563
c. €42,601,056
d. €22,562,709

Answer 1

The cash flow per plane for the Airbus A380 is €40,963,855, found by dividing the total development cost of €10.2 billion by the break-even quantity of 249 units.

Step-by-step explanation:

The question asks to calculate the cash flow per plane for the Airbus A380, given the total development investment and the break-even sales figure. The total investment by Airbus in developing the A380 is €10.2 billion. Airbus stated that they would break even after selling 249 units of the A380. To find the cash flow per plane, we divide the total development investment by the number of units required to break even.

To calculate: Cash flow per plane = Total development investment / Break-even quantity

Cash flow per plane = €10.2 billion / 249 units

Cash flow per plane = €40,963,855.42

Therefore, the correct answer is (a) €40,963,855.