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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
An order ticket is filled out and sent to the NYSE floor for execution. After being executed on the floor, it is discovered that the account number is incorrect. Under FINRA rules, the account number may be changed to the correct one by the: a.
Answers (1)
In class, we discussed the core and the auxiliary dimensions of Crest toothpaste. We went on to think about things such as "social confidence," "safety," and "good taste." These were examples of: a. Core features b. Auxiliary Dimensions c.
Answers (1)
The Jack Frost Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $8,400 for seven months of advertising.
Answers (1)
Dave Krug contributed $1,000 cash along with inventory and land to a new partnership. The inventory had a book value of $800 and a market value of $2,000. The land had a book value of $1, 400 and market value of $5,000.
Answers (1)
Faced with constantly changing conditions, why would a firm ever keep any factors fixed? What criteria determine whether a factor is fixed or variable?
Answers (1)
New Questions in Business
True or false Each consumer has a credit score in their credit report and the score adjusts up or down each month, based on positive or negative information reported by creditors
Answers (1)
Which type of unemployment is caused by a lack of demand for workers as a result of a shrinking economy?
Answers (1)
Actionable performance measures should be meaningful to a company's management and should provide the basis for decisions at the strategic level in an organization. A. True B. False
Answers (1)
In what countries is it important to keep a certain distance from the person you are greeting?
Answers (1)
If a company is using the accrual basis accounting method, when should it record its earned revenue? a. when cash is received, even though services may be rendered at a later date b.
Answers (1)