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Jetways Airline flies passengers between New York and Miami, making one round-trip daily using a leased Boeing 737 aircraft. Consider the number of passengers served daily as the output for the airline. Identify each of the following costs as either a variable, a fixed, or a quasi-fixed cost:
a. Cost of in-flight snacks and beverages for passengers.
b. Expenditure on jet fuel. c. Labor expense for pilots.
d. Monthly lease payment for Boeing 737 during the term of the lease.
e. Monthly fee at two airports for passenger check-in/ticketing counter space (airports charge airlines on a “pay-as-you-go” basis).
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