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Cold Duck Airlines flies between Tacoma and Portland. The company leases planes on a year - long contract at a cost that averages $ 6
Cold Duck Airlines flies between Tacoma and Portland. The company leases planes on a yearlong contract at a cost that averages $ per flight. Other costs fuel flight attendants, etc. amount to $ per flight. Currently, Cold Duck's revenues are $ per flight. All prices and costs are expected to continue at their present levels. If it wants to maximize profit, Cold Duck Airlines should
a drop the flight now but renew the lease if conditions improve.
b continue flying until the lease expires and then drop the run.
c continue the flight.
d drop the flight immediately.
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