Business, 22.02.2020 05:03 Jasten

Taking into account my operating and fuel costs, airport charges (gotta mow the runway every so often), etc., the estimated cost per flight is $2,000. I expect to fly full flights (100 passengers…I cram them into my little Cessna), so the marginal cost on a per-passenger basis is $20 ($2,000/100). Finally, I've estimated my demand curve for the local area to be P = 120 – 0.1Q, where P is the fare in dollars, and Q is the number of passengers per week. Based on this information:

A. What fare should I charge? At this fare, how many passengers will MushAir carry, and how many flights will I have to make? What is my weekly profit? (4 points)

B. Suppose that, using all the above information, a grain company offers me $4,000 per week to haul corn to Chicago. Obviously, I will have the plane filled up with corn and won't have any passengers, so I'd have to replace one of my weekly passenger flights with the corn flight (the operating cost would be the same…I won't have to pay for in-flight entertainment, but I'll have to vacuum it out after the flight). Should I carry the corn? Why or why not? (2 points)

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 07:40

Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z

Answers: 3

Answer

Business, 22.06.2019 11:10

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)

Answers: 2

Answer

Business, 22.06.2019 12:10

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%

Answers: 1

Answer

Business, 22.06.2019 13:00

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators

Answers: 1

Answer

You know the right answer?

Taking into account my operating and fuel costs, airport charges (gotta mow the runway every so ofte...

Questions

Business, 24.10.2019 21:43

Is a management function whereby procurement, storage and issuance of the same for purposes of manufacturing the products or consumption are conducted...