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Q.1 The following table shows some the costs incurred by a company Cilitar vista Masinal Cost 140 1.000 452.000 141 1.038 5,000 Fill in the
Q.1 The following table shows some the costs incurred by a company Cilitar vista Masinal Cost 140 1.000 452.000 141 1.038 5,000 Fill in the blank in the above table Q.2 Should Air Express Continue its flights or not? Airway express has an evening flight from Los Angeles to New York with an average of 80 passengers and a return flight the next afternoon with an average of 50 passengers. The plane makes no other trip. The charge for the plane remaining in New York overnight is $ 1,200 and would be zero in Los Angeles. The airline is contemplating eliminating the night flight out of Los Angeles and replacing it with morning flight. The estimated number of passengers is 70 in the morning flight and 50 in the return afternoon flight. The one way ticket is $200. The operating cost of the plane for each flight is $11,000. The fixed costs of the plane are $3,000 per day whether it flies or not. a. Should the airline replace its night flight from Los Angeles with morning flight? explain. b. Should the airline remain in business? Why and why not
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