Jim Wright, Worldwide Airway's vice president for operations has been approach by a Chinese tourist agency about flying chartered tourist flights from Hong Kong to London. The tourist agency has offered Worldwide Airways $150,000 per round-trip flight on a jumbo jet. Given the airlines usual occupancy rate and air fares, a round-trip jumbo jet flight between Hong Kong and London typically brings in revenue of $250,000. Thus, the tourist's agency's specially priced offer requires a special analysis by Jim Wright. Wright also determines that the variable cost of the charter would be less than that of a typical flight because it will not incur variable cost for reservation and ticketing amounting to $5,000