The Following Table Summarizes Six Potential Customers' Ages and Willingness

question 76

Multiple Choice

The following table summarizes six potential customers' ages and willingness to pay for a solo skydiving experience from SkyMasters.The aircraft has room for eight people,including the pilot and skydiving instructor.The marginal cost of adding each additional passenger is $100.SkyMasters holds significant market power for its region.
Use this information to answer the following questions:

-SkyMasters has decided to charge two different prices,a high price and low price,based on age.What would be the increase in total revenue the company gains from its practice of price discrimination versus what it would earn if it charged a single price to all customers?

• A) $1,300
• B) $1,200
• C) $650
• D) $300
• E) $100

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Definitions:

Financial Leverage

Leveraging financing to heighten the potential outcomes of an investment.

Current Ratio

A metric that assesses an organization's capability to cover its current liabilities with its existing assets.

Short-Term Bank Loan

A loan obtained from a bank that has a maturity of one year or less.

Accounts Payable

Money owed by a company to its creditors for products or services that have been delivered or used but not yet paid for.