Air freight has a high variable-cost-to-fixed-cost ratio due to the high costs of operating a flight.

Question

Quizplus · Accepted Answer

Air freight involves significant fixed costs, such as the cost of purchasing or leasing aircraft, hiring and training crew members, and maintaining facilities. However, the variable costs of operating a flight, such as fuel, labor, and landing fees, are also very high. This results in a high variable-cost-to-fixed-cost ratio for air freight.

Air Freight Has a High Variable-Cost-To-Fixed-Cost Ratio Due to the High