Topic- Variable Costing
Read the following scenario and then thoughtfully discuss the questions.
The cost per seat-mile on a major U.S. airline is 24.1 cents. In order to estimate the cost of flying a passenger from Pensacola, FL, to Denver, CO, we should multiply 1,184 miles by 24.1 cents.
Discuss
- Do you agree or disagree? Explain your reasoning.
- What would you suggest to estimate the cost of a flight?