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

Question

Quizplus · Accepted Answer

Air freight involves high costs such as fuel, maintenance, and crew salaries, which are variable costs and increase with every flight. Fixed costs such as the cost of the aircraft, hangar rent, and ground facilities are relatively less in proportion to the variable costs, resulting in a high variable-cost-to-fixed-cost ratio.

Air Freight Has a High Variable-Cost-To-Fixed-Cost Ratio Because of the High