Lowering the average ticket price by 10 percent, Managerial Accounting

Airlines give away millions of tickets each year through their frequent flyer programs, with the typical airline awarding a free ticket for each 25,000 miles flown on the airline. The average airline ticket costs $500 and is for a 2,500-mile round trip. Given this information, evaluate the following statement: Airlines could have the same effect on demand by eliminating their frequent flyer programs and simply lowering the average ticket price by 10 percent. 

Posted Date: 3/12/2013 8:12:19 AM | Location : United States







Related Discussions:- Lowering the average ticket price by 10 percent, Assignment Help, Ask Question on Lowering the average ticket price by 10 percent, Get Answer, Expert's Help, Lowering the average ticket price by 10 percent Discussions

Write discussion on Lowering the average ticket price by 10 percent
Your posts are moderated
Related Questions
Categories of zero base budgeting The preceding discussion will reveal that zero base budgeting is based primarily on: 1) Development of decision units 2) Identification

Explain Profitability ratios in relation to sales a) Gross profit ratio b) Net profit ratio c) Operating ratio d) Operating profit ratio e) Expenses ratio

Disadvantages of ratio analysis 1) False results: ratios are based upon the financial statement. In case financial ratio is incorrect or the data upon which ratios are based

opening stock unit were 8500 and closing stock units were 6750.frofit of 61200 using managerial costing.fixed overhead absorbed rate was 3 pr unit.what is the profit using absorpti


The Ragan Corporation uses a process cost system. The company started March with 2,300 units in Work in Process-Dept. A. During the month 4,000 units were started. At the end of th

What are the duties of the Public Company Accounting Oversight Board?

Decision-making is an integral part of all management functions. It is the process of choosing the among alternative courses of action. Managers have to

Going rate or follow the crowd pricing:- In this method the firm price its products at the similar level as that of the competition. This method supposes that there will be no

differentiate between multiple product , selling cots and margin management