-Green Duck Airways is considering adding a new flight between Portland and Seattle.Revenue from the flight is expected to be $8,000.The total cost of the flight is $9,500, and the variable cost is $4,000.Should the airline add this flight?
A)No, because the revenue of $8,000 is less than the cost of $9,500.
B)No, the addition to profit is too small to devote the aircraft to the flight.
C)Yes, profit increases by $4,000.
D)Yes, profit increases by $2,500.

Question

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-Green Duck Airways is considering adding a new flight between Portland and Seattle.Revenue from the flight is expected to be $8,000.The total cost of the flight is $9,500, and the variable cost is $4,000.Should the airline add this flight?
A)No, because the revenue of $8,000 is less than the cost of $9,500. 
B)No, the addition to profit is too small to devote the aircraft to the flight. 
C)Yes, profit increases by $4,000. 
D)Yes, profit increases by $2,500.

Quizplus · Accepted Answer

Profit increases by $4,000.

​ -Green Duck Airways Is Considering Adding a New Flight Between

-Green Duck Airways Is Considering Adding a New Flight Between