Lofty Airlines has a flight for which the regular ticket price is $200 and the variable costs per passenger are $50. Fixed costs assigned to each flight are $12,000. Each flight has a capacity of 125 seats, with an average of 95 seats sold at the regular price. To attract customers to the last 30 unsold seats, Lofty discounts the tickets by 50% for standby passengers. The contribution margin per standby passenger is
a. $25
b. $150
c. $100
d. $50.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Lofty Airlines has a flight for which the regular ticket price is $200 and the variable costs per passenger are $50. Fixed costs assigned ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shrinkage?
Answers (1)
The twin economic problems of the U. S. health care industry are the rising health care costs and the moral hazard problem in health care services. declining rate of immunization rates and the rising malpractice insurance costs.
Answers (1)
If an employee has conflict, this means the employee can do what?
Answers (1)
Assume you have a company that has $200 million in cash and $400 million in market value of debt. The company is generating free cash flow of $100 million per year starting next year and will grow at 5% per year for the foreseeable future.
Answers (1)
First National Bank charges 13.4 percent compounded monthly on its business loans. First United Bank charges 13.7 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank.
Answers (1)
New Questions in Business
The specific identification inventory method should be used when the inventory consists of identical, low-cost units that are purchased and sold frequently. True False
Answers (1)
Crystal Corporation produces a single product. The company's variable costing income statement for the month of May appears below: Crystal Corporation Income Statement For the month ended May 31 Sales ($22 per unit) $3,850,000 Variable expenses:
Answers (1)
Horizontal channel conflict can arise for a variety of reasons. An example would be a toy manufacturer selling its toys through toy stores, discount stores, department stores, and even drugstores.
Answers (2)
Which education level has the highest return on investment (ROI)
Answers (1)
Assume that the money demand function is (M / P) d = 2,200 - 200r, where r is the interest rate in percent. If the price level is fixed at P=2, and the Fed wants to fix the interest rate at 7 percent, it should set the money supply at:
Answers (1)