SCENARIOS Continental Lite

question 104

Multiple Choice

SCENARIOS
Continental Lite
In the mid-1990s,Continental Airlines chose to compete head-on with Southwest Airlines by launching Continental Lite,an alternative low-fare commercial airline passenger operation.Top executives at Continental had expected its no-frills operation to break even within a year of its inception,but the airline fell short of the goal.A source close to the company explained it by saying,"Its costs were too high,and its revenues were too low." Some observers criticized Continental's marketing efforts.When the no-frills service was first launched,it lacked a distinct name or identity,missing its chance to make a splash.Then Continental tried to sell three "brands" at once--Lite,a new premium service,and its more traditional long-haul domestic flights.As one rival expressed it,"You cannot be all things to all people."
-Refer to the American Girl Doll.In terms of the costs of producing the dolls and its accessories,the salary of the graphic designer who does the layout for the American Girl catalog is a:

• A) markup cost
• B) variable cost
• C) fixed cost
• D) derived cost
• E) elastic cost

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Definitions:

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The art and science of organizing and employing armed forces and their components during combat or engagements to defeat an adversary.

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Individuals who actively engage in, or advocate for, profound political change, often through the overthrow of an existing government or social order.

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A leading Founding Father of the United States, known for his contributions as a statesman, author, printer, and scientist among other roles.

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