Managerial ECO 550
Due Feb 13.2013
Chapter 9: Problems 3, 4, and 5
Problem #3
Identifying the indirect fixed cost of the charter service service for a particular one of many such charters this month would be
Problem #4
If one were trying to decide whether to operate or not to fly and unscheduled round trip charter flight, what would be the total direct fixed costs and variable costs of the flight?
To get the total costs youd have to add up the guaranteed flights and the possible cancellation flights Total costs would be 1000$ and variable cost would be based upon that.
Problem #5 Charter Contracts are negotiable to receiver many contracts….
Problem #5 >>Answer Yes I believe the airline should accept a charter flight proposal from a group that offers to guarantee the sale of 90 seats over 250, because the risk varies highly because its only 90 seats and realistically those 90 seats will be a guaranteed buy opposed to 250. So it will be a great advantage to the airline to do that plus sales increase.
Chapter 10: Problems 2, 6, and 10
Problem #2
Since the rae is 45 to 55% on average and MTC and nickelodeon are down to 12 and 18 percent at NBC and ABC and Porter Five Sources analysis of each network would be and MTV is more profitable relative to the other major network because one off gate it has more viewers than NBC and ABC, and its more of a reality viewing that gets its viewings’ and ratings, ABC is an important channel and NBC but you’re going to get more profit and views from MTV channel. My Chart >>
Problem #10
The following of the products that are likely to encounter adverse selection problems are certified gemstones because one they will be rare to find and they can add interest the older they become.