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he route manager has calculated a loss on each outbound ight of 1,335. She relieves that there is a market for 48hour ticket purchases if

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he route manager has calculated a loss on each outbound ight of 1,335. She relieves that there is a market for 48hour ticket purchases if a new fare of 41] was ntroduced. as this would be 5 less than the price charged by a competitor for the tame ticket. She estimates that she could sell 15 seats per ight on this basis. This vould not affect either the Tdav purchase, which is used by business travelers. or :tand-bv fares. which are usuallyr oversobscribed. The additional revenue of 60K) {15 @ :40} would cover almost hafl the loss. The route manager has prepared a report for her nanager asking that the new fare he approved and allowing her three months to prove hat the rtew tickets could be sold. Comment on the route manager's proposal. Case :tudies provide the reader with the opportunity' to interpret and analyze nancial ntormation produced by an accountant for use by non-accounting managers in lecisionmalo'ng. There is a suggested answer for the case in Part Iv, although the Iature of case studies is that there is rarely;r a single correct answer. as different ipproaches to the problem can highlight different aspects of the case and a range of possible approaches are possible

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