Scenario 14-5 An Airline Knows That There Are Two Types of Travelers

question 430

Multiple Choice

Scenario 14-5
An airline knows that there are two types of travelers: business travelers and vacationers.For a particular flight,there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket.There are 150 seats available on the plane.Suppose the cost to the airline of providing the flight is $20,000,which includes the cost of the pilots,flight attendants,fuel,etc.
-Refer to Scenario 14-5.How much additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?

• A) $15,000
• B) $25,000
• C) $40,000
• D) $70,000

Calculate the metric equivalent of common non-metric measurements.

Accurately convert measurements in the nursing or medical context, such as medication dosages and patient measurements.

Develop a conceptual understanding of scale among different metric units (micro, milli, centi, kilo).

Perform arithmetic operations required for dosage calculations and conversions.

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Definitions:

Acquisition Differential

The difference between the cost of acquiring a company and the fair value of its identifiable net assets at the time of acquisition, essentially another term for goodwill.

Trademarks

Symbols, names, phrases, or logos legally registered or established by use as representing a company or product.

Unrealized Inventory Profits

Profits that have been recorded on paper due to an increase in inventory value but have not been realized through sales.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without having control over those policies.