1. why are capacity decisions critical in the airline industry? a. too many or too few planes, gates, and employees can harm revenues and profits. b. us airlines filled just 77% of their seats last fall. c. they are money makers in winter. d. all of the above. 2. how can airlines impact capacity? a. fly the planes only on the routes that have the five highest demands. b. hire more workers each fall. c. conduct more routine maintenance in winter months. d. all of the above. 3. fuel prices impact capacity decisions because a. unions do not want to cut staff when prices drop. b. they represent a high percent of operating expenses. c. they encourage airlines to provide less flights during summer. d. longer routes are always less profitable. 4. different airlines handle capacity adjustments by a. adding flights to warmer destinations during winter. b. parking planes in winter. c. squeezing more hours out of each plane per day. d. all of the above.

Assume today is december 31, 2013. barrington industries expects that its 2014 after-tax operating income [ebit(1 – t)] will be $400 million and its 2014 depreciation expense will be $70 million. barrington's 2014 gross capital expenditures are expected to be $120 million and the change in its net operating working capital for 2014 will be $25 million. the firm's free cash flow is expected to grow at a constant rate of 4.5% annually. assume that its free cash flow occurs at the end of each year. the firm's weighted average cost of capital is 8.6%; the market value of the company's debt is $2.15 billion; and the company has 180 million shares of common stock outstanding. the firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. using the corporate valuation model, what should be the company's stock price today (december 31, 2013)? round your answer to the nearest cent. do not round intermediate calculations.

True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity

Kirnon clinic uses client-visits as its measure of activity. during july, the clinic budgeted for 3,250 client-visits, but its actual level of activity was 3,160 client-visits. the clinic has provided the following data concerning the formulas to be used in its budgeting: fixed element per month variable element per client-visitrevenue - $ 39.10personnel expenses $ 35,100 $ 10.30medical supplies 1,100 7.10occupancy expenses 8,100 1.10administrative expenses 5,100 0.20total expenses $ 49,400 $ 18.70the activity variance for net operating income in july would be closest to: