What Calculation Would Be Used to Get the Cost Per

question 26

Multiple Choice

What calculation would be used to get the cost per available kilometer?

• A) Operating cost + ASK
• B) Operating cost / RPK
• C) RPK / ASK
• D) Operating cost / ASK
• E) Ticket revenue / RPK

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Definitions:

Average Variable Cost

The total variable costs (costs that change with output level) of production divided by the quantity of output produced.

Fixed Costs

Fixed costs are business expenses that remain unchanged regardless of the level of goods or services produced, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that vary directly with the level of production or sales, such as raw materials and labor expenses.

Steel

An alloy of iron and carbon, and sometimes other elements, known for its high tensile strength and ability to be shaped into various forms.