acc403module5case - TUI UNIVERSITY PRINCIPLES OF ACCOUNTING...

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TUI UNIVERSITY PRINCIPLES OF ACCOUNTING ACC 403 MODULE 5 Case Assignment Dr Annette Hebble Gennaro A. Penn March 19, 2010
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1. Calculate the operating income that Westcoast Air earns on each one-way flight between San Francisco and Fiji. 2. The Market Research Department of Westcoast Air indicates that lowering the average one-way fare to $280 will increase the average number of passengers per flight to 212. Should the company lower its fare? Show your calculations. 3. Travel International, a tour operator, approaches Westcoast Air on the possibility of chartering (renting out) its jet aircraft twice each month, first to take Travel International’s tourists from San Francisco to Fiji and then to bring the tourists back from Fiji to San Francisco. If Westcoast Air accepts Travel International’s offer, Westcoast Air will be able to offer only 184 (208 – 24) of its own flights each year. The terms of the charter are as follows: (a) For each one-way flight, Travel International will pay Westcoast Air $75,000 to charter the plane and to
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This note was uploaded on 03/25/2012 for the course ACC 403 taught by Professor Zuff during the Spring '12 term at Trident Technical College.

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acc403module5case - TUI UNIVERSITY PRINCIPLES OF ACCOUNTING...

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