Week 4 Discussion Research 3 - If they ran more flights...

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JetBlue can perform an analysis on the costs and profits could be done for the use of batch level activities and for not using this approach. By using the batch-level approach as described by Robert, JetBlue is getting the maximum amount of revenue possible per plane. The costs incurred for each flight should be about the same (wages, maintenance, etc). Therefore, by using this strategy the company is maximizing profits. The company could measure this against alternatives.
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Unformatted text preview: If they ran more flights that were not at full or close to full capacity, they will have less revenue per flight, but still similar cost amounts. This would mean that their costs will either stay the same or increase, but their revenues will decrease. This is absolutely measurable against using a batch-level activity approach. It seems pretty clear that this is a smart way to approach their business....
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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.

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