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An airline is losing its market share, and its profits are below the industry average. A newly hired manager is trying to figure out
An airline is losing its market share, and its profits are below the industry average. A newly hired manager is trying to figure out why. An airline's average total cost of a flight is $27,300. Out of this amount, $8,400 are fixed costs and $18,900 are the costs of an additional flight. The company's average aircraft has 140 seats, and it sells the tickets at an average price of $300 per seat. The airline offers a flight only if at least 70% of the seats are filled.
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