Cold Duck Airlines Flies Between Tacoma and Portland

question 196

Multiple Choice

Cold Duck Airlines flies between Tacoma and Portland. The company leases planes on a year-long contract at a cost that averages $600 per flight. Other costs (fuel, flight attendants, etc.) amount to $550 per flight. Currently, Cold Duck's revenues are $1,000 per flight. All prices and costs are expected to continue at their present levels. If it wants to maximize profit, Cold Duck Airlines should

• A)drop the flight immediately.
• B)continue the flight.
• C)continue flying until the lease expires and then drop the run.
• D)drop the flight now but renew the lease if conditions improve.

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Definitions:

Pie Chart

A circular statistical graphic divided into slices to illustrate numerical proportion, making it easy to compare parts of a whole.

Line Graph

A type of graph that uses lines to connect data points representing changes in values over time or other variables.

Visual

A type of content that includes images, graphs, or other graphical elements to convey information or concepts.

Proposed Schedule

A proposed schedule outlines planned dates and times for specific activities or events, often used in project management to organize and communicate the sequence of tasks.