The president of an airline blamed a profit squeeze on unwise and unjustifiable promotional fares. He pointed

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The president of an airline blamed a profit squeeze on “unwise and unjustifiable promotional fares.” He pointed out that 50% of the company’s revenue came from “discount fares.” Explain why discount fares tend to reduce net income and point out circumstances in which a discount from the regular price of a plane fare could possibly increase net income. LO6

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Accounting The Basis For Business Decisions

ISBN: 9780070415515

5th Edition

Authors: Robert F. Meigs, Walter B Meigs

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