The Average Cost Per Seat on a Bus Trip from Montreal

question 159

Multiple Choice

The average cost per seat on a bus trip from Montreal to Toronto is $140.Suppose no refreshments are served and three seats are empty.How could the bus company increase its profit?

• A)if it charged no less than $140 for the three remaining seats
• B)if it charged more than $140 for the three remaining seats
• C)if it charged any ticket price above $0 for the remaining seats
• D)if it left the seats empty

Utilize balance sheet data to prepare and understand cash flow statements.

Understand the concept of contribution margin and how it is calculated.

Learn the high-low method for estimating cost behavior.

Comprehend the purpose and method of creating scatter diagrams.

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Definitions:

Partnership

A voluntary association between two or more people who co-own a business for profit.

Share Classes

Categories of stock in a company, each with different rights, privileges, and restrictions.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and believed to benefit the company.

Action Against Directors

Legal proceedings brought against the directors of a company for negligence, breach of duty, or other wrongdoing.