Question: Find the information provided by management about the expected increase in passenger capacityduring the coming years. Assuming revenue increases in proportion to passenger capacity, whatwould

Find the information provided by management about the expected increase in passenger capacityduring the coming years. Assuming revenue increases in proportion to passenger capacity, whatwould be the expected revenue for 2012? Should the firm expect an increase in costs associatedwith the increase in capacity? When budgeting for these costs, would the costs be proportional tothe increase in revenues? Why or why not?

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