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An aircraft costs $3.0 million to purchase. Assuming a 10- year amortization, what is the quarterly depreciation expense for the aircraft? A firm is

 

An aircraft costs $3.0 million to purchase. Assuming a 10- year amortization, what is the quarterly depreciation expense for the aircraft? A firm is competing in the economy market with a cost per available seat mile of $0.17 (industry average: $0.21), revenue per passenger mile of $0.22 (industry average: $0.35), and marketing expense of 0.5% of revenue. What would you recommend they do to increase profitability?

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