Break into teams and identify costs that an airline such as Northwest would incur on a flight from Green Bay to Minneapolis.
(1) Identify the individual costs as variable or fixed.
(2) Assume that Northwest is trying to decide whether to drop this flight because it seems to be unprofitable. Determine which costs are likely to be saved if the flight is dropped. Set up your answer in the following format.
Cost Variable or Fixed Cost Saved if Flight Is Dropped Rationale