BUSI 620 help Making Decisions/uophelp.com BUSI 620 help Making Decisions/uophelp.com | Seite 16

Business 620
Critical Thinking Four
Salvatore’s Chapter 8:
a) Discussion Questions: 2 and 10.
b) Problems: 3, 11,12 and spreadsheet problem 1 (p. 357).
Salvatore’s Chapter 9:
a)
Problems: 7, 11, and spreadsheet problem 1.
Froeb et al.’s Chapter 9:
a) Individual problems: 9-2, 9-3 and 9-4.
Froeb et al.’s Chapter 11:
a) Individual problems: 11-4 and 11-5.
Discussion Question 2:
a) What is the distinction between marginal cost and incremental cost?
b) How are sunk costs treated in managerial decision making? Why?
Discussion Question 10: What are the aim, usefulness, and shortcomings
of
a) Cost-volume-profit analysis and
b) The concept of operating leverage?
Problem 3:Airway Express has an evening flight from LA to NY with an
average of 80 passengers and a return flight the next afternoon with an
average of 50 passengers. The plane makes no other trip. The charge for
the plane remaining in NY overnight is $1,200 and would be zero in LA.
The airline is contemplating eliminating the night flight out of LA and
replacing it with a morning flight. The estimated number of passengers
is 70 in the morning and 50 in the return afternoon flight. The one-way
ticket for any flight is $200. The operating cost of the plane for each