Price comparisons on competing airlines

Assignment Help Accounting Basics
Reference no: EM13784602

Scenario:

You are employed by Sunshine Airlines and your boss has asked you to do some price comparisons on competing airlines. Once you gather the data, you are required to prepare a business memo to your boss, Mr. Smith, with your findings.

Required:

Identify a minimum of two airlines that depart from a major airport located closest to you. This will be your departure city. Your destination will be Honolulu, HI.

Calculate round-trip fares for the following two dates. You may choose to go directly to the airline or use one of the Internet-based travel companies such as Expedia, Orbitz, Travelocity, etc.

Departing this Friday and returning the following Friday. Try to use any last-minute pricing sales if available.

Departing three weeks from this Friday and returning the following Friday.

Calculate the difference between the two fares for each airline.

Compare all of the fares and analyze the difference.

Decide whether these airlines are generating any positive contribution margin on either of these fares.

Identify examples of both fixed and variable costs that each airline would incur.

Analyze whether the costs are variable or fixed in relation to an individual passenger.

Prepare a business memo to your boss that includes the required information and conclude which of these two airlines is your closest competitor.

Reference no: EM13784602

Questions Cloud

Dissonance and attitudes : The textbook describes cognitive dissonance as the difference between our beliefs and our actions. Provide three (3) examples of cognitive dissonance that you have experienced. Describe at least two (2) potential behaviors or consequences that can..
Report of the macroeconomic risks : The paper should be a detailed analysis and report of the macroeconomic risks faced by Alcoa. Project report is expected to include substantial analysis of Alcoa's:
Until recently has experienced rapid growth : Harold Frankson is the CEO of Frankson Inc., a privately owned, medium-sized manufacturing company. The company is 17 years old, and until recently has experienced rapid growth. Mr. Frankson credits the Asian economy with the company’s recent problem..
Similarity of conclusion derived from y-chromosome and mtdna : similarities between the conclusions derived from Y-chromosome and MtDNA analysis and include something on the timing and pattern of migration outside of Africa.
Price comparisons on competing airlines : You are employed by Sunshine Airlines and your boss has asked you to do some price comparisons on competing airlines. Once you gather the data, you are required to prepare a business memo to your boss, Mr. Smith, with your findings.
What is the required rate of return on a preferred stock : Crisp Cookware's common stock is expected to pay a dividend of $3 a share at the end of this year (D1 = $3); its beta is 0.8; the risk-free rate is 5.2%; and the market risk premiums 6%. The dividend is expected to grow at some constant rate g; and t..
Problems based on obesity or malnutrition : What is the long-term outlook for individuals on a fast-food diet in terms of longevity and quality of life?
Sensors are extremely price sensitive : Justin Jordan has been named project manager of the General Sensor Company’s new sensor manufacturing process project. Sensors are extremely price sensitive. General has done a great deal of quantitative work to be able to accurately forecast changes..
What consequences might your proposed law have : What consequences might your proposed regulation/law have on affected businesses? Describe one good and one bad consequence. What consequences might your proposed regulation/law have on protected consumers? Describe one good and one bad consequence

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd