When making key financial decisions for a business, budgets can provide invaluable information in determining the best course of action. Changes to different parts of a budget may have a greater or lesser impact to the overall financial well-being of the organization. Care should be taken in analyzing all options. The airline business is very competitive and, as a result, management is under constant pressure to improve its profits. There are various ideas that could possibly help improve profits. Consider the following possibilities:

• Increasing the price of tickets
• Reducing the number of flight attendants
• Reducing the number of flights on which meals are served
• Serving smaller meals or serving snacks instead of meals
• Eliminating employee raises, or limiting the percentage increases
• Reducing the number of baggage handlers

For each of these ideas, determine the effect the potential solution would have on each of the respective budgets and on the projected financial statements. Then, respond to the following:

• Which solution do you think produces the best scenario for increased profits?
• What other issues should management consider when implementing your solution?

The length of your response(s) should be a minimum of 150 words.