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Question 2 (4 points) Ch. 9 - American Airlines has decided to use two measures of activity. These measures of activity have been determined to
Question 2 (4 points) Ch. 9 - American Airlines has decided to use two measures of activity. These measures of activity have been determined to be flights and passengers, for its cost formulas (e.g. Y = a + bx + cx) in its budgets and performance reports. American Airlines cost formula for a planes operating costs is $57,410 per month plus $2,652 per flight (b) plus $9 per passenger (c). American Airlines expected level of activity in November to be 76 flights and 288 passengers, but the actual activity was 75 flights and 289 passengers. The actual cost for plane operating costs in February was $257,930. The plane operating costs in the planning budget for November would be closest to: $258,911 $261,554 $257,930 $260,582
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