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Budgeting for Managers Home Work Week 04 Prepared By: Samiul Islam
6-27 Any Airline is essentially eager to update cause frequently to maintain a large fleet of aircraft. Several cost elements come into the scene, such as labor, fuel, maintenance cost, advertisement, the airport rate, and ownership costs. In the. In the period of recession and after that, fuel cost is more critical and needs to be updated regularly. There will be a frequent variation of petroleum cost per barrel, which will adversely affect the airline service severely. Several cost updating methods are put into practice. For example, many airlines have added six seats per plane and conserved 10 million in fuel expenses without compromising passenger Comfort. The bulky seats are conveniently placed with slim ones. 6-29 1. B 2. F 3. E 4. I 5. E 6. H 7. I 8. F or j 9. K 10. G 6-31 200 400 600 800 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 12250 13750 15250 16750 0 0 0 0 0 7500 9000 10500 12000 4750 4750 4750 4750 Total Cost Variable Cost Total Fixed Cost
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