The Following Table Summarizes Six Potential Customers' Ages and Willingness

question 52

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:

-Assume that SkyMasters follows the profit-maximizing rule and that the company charges a single price for skydiving.What would the company's total revenue be?

• A) $1,650
• B) $1,500
• C) $1,000
• D) $900
• E) $600

---

Definitions:

FMV

The Fair Market Value represents the price at which property would be sold in an open market scenario.

Unrecaptured 1250 Gain

A type of gain on the sale of depreciable real property that’s taxed at a different rate than other capital gains.

Depreciation

The systematic allocation of an asset's cost over its useful life, reflecting its loss of value over time.

Gift Tax

A levy imposed on the act of transferring property from one person to another without receiving full value or any compensation in return.