Univ Airlines and Mirago Airlines Are Two Competing Airlines

question 7

Short Answer

Univ Airlines and Mirago Airlines are two competing airlines.They make an agreement to charge customers a certain price for airfreight.This leads to the filing of several lawsuits against them by other airlines.In this scenario,the two firms most likely indulged in__________.

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Definitions:

Differential Analysis

The area of accounting concerned with the effect of alternative courses of action on revenues and costs. Also called incremental analysis.

Unprofitable Segment

A part of an organization that consistently fails to contribute a positive net income or adds a financial loss to the company's overall performance.

Opportunity Cost

The revenue that is foregone from an alternative use of an asset, such as cash.

Make-Or-Buy Options

The decision-making process where a company chooses between manufacturing a product in-house or purchasing it from an external supplier.