Lofty Airlines Has a Flight for Which the Regular Ticket

question 82

Multiple Choice

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)$50
• C)$100
• D)$150

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Definitions:

Reality Shock

The feeling of surprise or dismay experienced when encountering situations that are starkly different from what was anticipated.

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or social group.

Role Management

The process of effectively understanding and balancing the multiple roles an individual may have within different contexts.

Organizational Socialization

The method by which new staff members acquire the necessary attitudes, knowledge, skills, and behaviors to operate successfully in a company.