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Variable costs amounting to 50 of ticket price if the

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Air Atlantic is considering a new service between Paris and Calgary. It can use existing aeroplanes, each of which has a capacity of 240 passengers, for one flight a week with fixed costs of $90,000 and variable costs amounting to 50% of ticket price. If the airline plans to sell tickets at $600 each, what can you say about their proposed service?

Reference no: EM13479762

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