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Penny has prepared the following data to help her in making this decision. Revenues and Costs Under Two Alternatives Nonstop With Stop in Differential Route

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Penny has prepared the following data to help her in making this decision. Revenues and Costs Under Two Alternatives Nonstop With Stop in Differential Route Phoenix Amount Passenger $200,000 $225,000 $25,000 Revenue Cargo Revenue 50,000 50,000 O Landing Fee in 0 5,000 (5,000) Phoenix Use of Airport 0 3,000 (3,000) Gate Facilities Flight Crew Cost 2,000 2,500 (500) Fuel 25,000 30,000 (5,000) Meals & Services 4,000 5,000 (1,000) Aircraft 1,000 1,000 O Maintenance Total Revenue 218,000 228,500 (10,500) less Costs Instructions Do the following for this assignment: 1. Identify each cost as relevant or irrelevant. (20 Points) 2. Then analyze your results to determine whether Global Airways should make the stop in Phoenix or continue with the non-stop flight. State the action Global Airways should take. (10 Points)

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