Evergreen Air Center is the world's largest parking lot for unwanted commercial aircraft.Airlines pay from $750 to $5,000 monthly for the storage services provided by Evergreen.Prior to September 2001,the company had 140 discarded airplanes at its Arizona facilities and was growing at a rate of about six planes monthly with about two per month sold for parts and/or scrap metal.After calamity struck the airline industry in September 2001,the airlines retired over 1,000 planes,many of which have found their way to Evergreen.Now the actual number of planes stored at Evergreen differs significantly from the prediction based on previous behavior in effect before September 2001.This difference is referred to as the __________.
A)contribution margin
B)planning gap
C)marginal trend
D)breakeven point
E)sales differential

Question

Quizplus · Accepted Answer

The planning gap refers to the difference between the predicted behavior or outcome and the actual behavior or outcome, which is the case with the number of planes stored at Evergreen. The other options (A, C, D, and E) are not relevant to the given scenario.

Evergreen Air Center Is the World's Largest Parking Lot for Unwanted