Airline decision about whether to cancel a particular flight


Problem: Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Number of Passengers Total Cost (Dollars per flight) 0 30,000 10 45,000 20 50,000 30 53,000 40 55,000 50 57,000 60 58,000 70 58,500 80 59,000 90 59,300 100 59,500 Given the information presented in the previous table, the fixed cost to operate this flight is $.

 

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Accounting Basics: Airline decision about whether to cancel a particular flight
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