4 WSM Corporation is considering offering an air shuttle service between Sao Paulo and Rio de Janeiro. It plans to offer four flights every day (excluding certain holidays) for a total of 1,400 flights per year (-350 days 4 flights per day). WSM has hired a consultant to determine activity-based costs for this operation. The consultant's report shows the following Activity Flying and maintaining aircraft Serving passengers Advertising and marketing Activity Measure (cost driver) Number of flights Number of passengers Number of promotions Unit Costcoat per unit of activity) $ 500 per flight $ 5 per passenger $40.000 per promotion Skipped WSM estimates the following annual information. With 4 advertising promotions, it will be able to generate demand for 40 passengers per flight at a fare of $150. The lease of the 60-seat aircraft will cost $2,000,000. Other equipment costs will be $1,000,000 Administrative and other marketing costs will be $600,000 SM 4 decides not to adopt the Internet strategy, regardless of your answer to requ is now considering a plan to sell tickets at two prices. An unrestricted ticket (good for travel at any time on any 175. A discount ticket, good for reservations made in advance, would sell for $130. Management estimates that tickets (25 per flight) at the unrestricted airfare of $175. All other data remain the same. Ignoring the information in requirement (). how many discounted tickets would WSM have to sell annually to ea income of $3,700,000? Assume that the annual number of flights remains at 1,400 and that the discounted ticke divided across the 1.400 flights. Skipped Complete this question by entering your answers in the tabs below. Reg A Reg B1 Req B2 Regc What annual operating income can WSM expect from this new service? (Enter your answer in thousands of dollars.) Operating income 4 is now considering a plan to sell tickets at two prices. An unrestricted ticket (good for travel at any time on any day) wou 175. A discount ticket, good for reservations made in advance, would sell for $130. Management estimates that it can se tickets (25 per flight) at the unrestricted airfare of $175. All other data remain the same. Ignoring the information in requirement (1) how many discounted tickets would WSM have to sell annually to earn an op income of $3,700,000? Assume that the annual number of flights remains at 1,400 and that the discounted tickets would divided across the 1.400 flights. Skipped Complete this question by entering your answers in the tabs below. ReqA Req B1 Reg B2 Reg C WSM is considering selling tickets over the Internet to save on commissions and other costs. It is estimated that the cost driver rate for flights would decrease by $100 as a result of Internet sales. Administrative and other marketing costs would increase by $1 million. WSM estimates that the added convenience would generate a 5 percent increase in demand. All other costs and fares would remain the same. What annual operating income can WSM expect from adopting Internet ticket sales? (Enter your answer in thousands of dollars.) Show less Operating income 4 is now considering a plan to sell tickets at two prices. An unres 175. A discount ticket, good for reservations made in advance, tickets (25 per flight) at the unrestricted airfare of $175. All othe Ignoring the information in requirement (1) how many discount income of $3,700,000? Assume that the annual number of fligt divided across the 1.400 flights. Skipped Complete this question by entering your answers in the ta Reg A Req B1 Red B2 Reqc Would you recommend that WSM adopt Internet ticket sales? OYes Ono 4. 175. A discount ticket, good for reservations made in advance, would sell for $130. Management estimates that it can sel tickets (25 per flight) at the unrestricted airfare of $175. All other data remain the same. Ignoring the information in requirement (1) how many discounted tickets would WSM have to sell annually to earn an op income of $3,700,000? Assume that the annual number of flights remains at 1,400 and that the discounted tickets would divided across the 1.400 flights. Skipped Complete this question by entering your answers in the tabs below. Req A Reg B1 Reg B2 Reqc Assume that WSM management decides not to adopt the Internet strategy, regardless of your answer to requirement (b). Instead, it is now considering a plan to sell tickets at two prices. An unrestricted ticket (good for travel at any time on any day) would sell for $ 175. A discount ticket, good for reservations made in advance, would sell for $130. Management estimates that it can sell 35,000 tickets (25 per flight) at the unrestricted airfare of $175. All other data remain the same. Ignoring the information in requirement (b), how many discounted tickets would WSM have to sell annually to eam an operating income of $3,700,000? Assume that the annual number of flights remains at 1,400 and that the discounted tickets would be evenly divided across the 1,400 flights. Show less Number of discount tickets