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Southern Airways, a small regional airline, has a daily late evening flight into Atlanta. The plane must be in Atlanta at 8:00 am each morning for a flight into Richmond, Virgina. Unfortunately, the charge for a plane remaining overnight in Atlanta is $500. One alternative is to schedule a 9:00 pm flight to Gainesville, Florida (a one hour trip), and a 6:00 am flight back to Atlanta. There is no change for an overnight stay in Gainsville. However, the flights to and from Gainesville will only average only about ten passengers each at a one-way fare of 50. The operating cost of the plane is 600 per hour. The company's total fixed costs (which are unaffected by the decision to be made here) are allocated to each flight at the rate of $300 per hour. Should the plane stay in Atlanta overnight, or should flights to and from Gainesville be schedules. PLEASE EXPLAIN YOUR DECISION.
A corporate jet costs $1,350,000 and will incur $200,000 per year in fixed costs (maintenance, licenses, insurance, and hangar rental) and $277 per hour in variable costs (fuel, pilot expense, etc.).
you are getting ready to consult with an internal client on adding new job functions to part of the organization. you
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Normal 0 false false false EN-US X-NONE X-NONE The chair of the Council ..
In the final round of a TV game show, contestants have a chance to increase their current winnings of 1 million dollars to 10 million dollars. If they are wrong, their prize is decreased to $100,000. To win, they have to guess the exact percentage th..
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