1. Compute the operating expenses for Expedia in the first quarter of 2001. In the first quarter of 2002.
2. Determine the cost function for Expedia, that is, the total fixed cost and the variable cost as a percentage of sales revenue. Use the same form as equation (1) on page 100.
3. Explain how Expedia's operating income could increase by $37 million with an increase in sales of $59 million, while it had an operating loss of $19 million on its $57 million of sales in the first quarter of 2001.
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