Coast to Coast Bus Lines acquired the following data about the operating cost of three of its top competitors.
Operating cost per seat per mile
Competitor A $.11
Competitor B $.15
Competitor C $.16
Management decides to use the average operating cost per seat per mile as a mark. Coast to Coast per seat is 12.5 cents per mile.
A) It is equal to the mark
B) It compares favorably
C) It compares unfavorably
D) It compares favorably to the best performing competitor

Question

Quizplus · Accepted Answer

Coast to Coast's cost of 12.5 cents is lower than the average of its competitors (A: $.11, B: $.15, C: $.16), making its performance favorable.

Coast to Coast Bus Lines Acquired the Following Data About