Spraque Air Uses Two Measures of Activity, Flights and Passengers

question 47

Multiple Choice

Spraque Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $40,520 per month plus $2,733 per flight plus $11 per passenger. The company expected its activity in June to be 71 flights and 207 passengers, but the actual activity was 70 flights and 205 passengers. The actual cost for plane operating costs in June was $239,580.
-The plane operating costs in the planning budget for June would be closest to:

• A) $239,580
• B) $236,840
• C) $234,085
• D) $243,003

Understand the conditions under which silence can be considered acceptance.

Distinguish between valid offers and advertisements.

Know the effect of specifying or not specifying the method of acceptance in an offer.

Comprehend the application of the mirror-image rule and the implications of altering the terms of an acceptance.

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Definitions:

Respiratory Diseases

Medical conditions that affect the lungs and other parts of the respiratory system, hindering breathing.

Chronic Pulmonary Disease

A term usually referring to chronic obstructive pulmonary disease (COPD), a chronic inflammatory lung disease that causes obstructed airflow from the lungs.

Central Nervous System

The principal part of the nervous system, comprising the brain and the spinal cord, responsible for processing and sending out information.

Hardiness

A personal characteristic involving a set of three related personality traits: commitment, control, and challenge, which helps individuals cope with stress.