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DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1100 of
DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1100 of which fixed costs are $800. Expected revenues from the flight are $600. DASH should:
add this flight because the flight's expected revenue covers part of the fixed cost.
not add this flight because only flights which cover their full costs are profitable.
not add this flight because it is not profitable at the margin.
not add this flight because total costs exceed total revenue.
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