Below Is a Decision Tree for the Airline Revenue Management

question 28

Multiple Choice

Below is a decision tree for the airline revenue management.Create a one-way data table to answer the following question(s) .
-If the probability of selling the full-fare ticket is 0.50,what is the expected value of the ticket?

• A)$210
• B)$300
• C)$480
• D)$420

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Definitions:

Direct Labor Variances

The differences between the actual costs of direct labor and the standard or expected costs.

Direct Labor Standards

Established benchmarks that specify the amount of direct labor time and the cost that should be involved in producing one unit of finished goods.

Labor Cost

The total amount of money paid for employee wages, benefits, and taxes by a business.

Variable Overhead Efficiency Variance

The difference between the actual and expected (or standard) use of variable overheads based on the actual activity levels.