Airline Mogul Forum
Airline Mogul => General Chat => Topic started by: mashimaro_1 on November 05, 2008, 12:26:42 am
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As I understand DOC = daily operating contribution, that is the profit made after all mx, gate costs etc. are deducted. Am I right?
My DOC is € 13,666,619, I would have thoguht that in one month (one real day) I would have made € 13,666,619 * 24 = 327 998 856.
However on my finance page my projected total for the end of the month is only €252,879,009!
Could some one please explain?
Thanks
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Not quite. Gate costs and maintenance are not deducted from the DOC. Only "daily" expenses and revenues.
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You DOC is an hourly profit, with all your route profit and Misc Profit(Food and Drink Sell) minus your Misc Expense, Staff Expense and Fuel Expense. Then your Monthly Profit is all your total profit in DOC, all your Misc Profit, and all your Leasing Profit(if you are leasing any plane out). Then that total is minused by your one more Daily Fuel Expense, Daily Staff Expense, and Daily Misc Expense(for that day, as it is minused on the month change day too). Then your Monthly profit is minused also by some Monthly Expense(only being payed on Month Change). Those Monthly Expense are Gate Fees(paying the rent on gates), Maintenance Fees(the fee to keep planes running and operating), and finally Lease Expense(the rent you pay for a plane your leasing in your fleet, if you have any). And once you do the math, you'll have your Month Profit.
Hope this Helps
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Thanks! That made it much clearer :)
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no problem
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an easier way to say that is contribution = total revenue - total variable costs
and contribution - fixed costs = profit