Coast to Coast Bus Lines Acquired the Following Data About

question 175

Multiple Choice

Coast to Coast Bus Lines acquired the following data about the operating cost of three of its top competitors.
Operating cost per seat per mile
Competitor A $.11
Competitor B $.15
Competitor C $.16
Management decides to use the average operating cost per seat per mile as a mark. Coast to Coast per seat is 12.5 cents per mile.

• A) It is equal to the mark
• B) It compares favorably
• C) It compares unfavorably
• D) It compares favorably to the best performing competitor