Homework: Managerial Challenge
US Airways (American Airlines) owns a piece of land near the Pittsburgh International Airport. The land originally cost US Airways $375,000. The airline is considering building a new training center on this land. US Airways determined that the proposal to build the new training center is acceptable if the original cost of the land is used in the analysis, but the proposal does not meet the airline's project acceptance criteria if the land cost is above $850,000. Assume the labor and raw materials total $1,720,000. A developer recently offered US Airways $2.5 million for the land. What is the economic profit, opportunity cost, and should US Airways (American Airlines) build the training center at this location? (Chapter 8 Economic Cost)
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
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