In comparing airline companies it is common to analyze Revenue/passenger/mile traveled. The company with the higher...
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In comparing airline companies it is common to analyze Revenue/passenger/mile traveled. The company with the higher R/P/M is generally considered to be better run. In the statistics below, both companies earn the same Revenue and R/P/M so a direct comparison is more difficult. Delta United Revenue (R) $10,000,000,000 $10,000,000,000 Passengers (P) 4,000,000 2,666,670 Miles flown (M) Jet fuel price Customer acquisition cost (i.e. Facebook advertising, Google ad words, etc.) GDP/capita 20,000,000 30,000,000 R/P/M Assume that there are 2 potential new markets for air travel: Uruguay or Paraguay. Which market would likely be more lucrative for Delta and which for United? Uruguay $5.00 per gallon $0.50 per contact $35,000 $1.25 $1.25 Paraguay $8.00 per gallon $0.20 per contact $50,000 In comparing airline companies it is common to analyze Revenue/passenger/mile traveled. The company with the higher R/P/M is generally considered to be better run. In the statistics below, both companies earn the same Revenue and R/P/M so a direct comparison is more difficult. Delta United Revenue (R) $10,000,000,000 $10,000,000,000 Passengers (P) 4,000,000 2,666,670 Miles flown (M) Jet fuel price Customer acquisition cost (i.e. Facebook advertising, Google ad words, etc.) GDP/capita 20,000,000 30,000,000 R/P/M Assume that there are 2 potential new markets for air travel: Uruguay or Paraguay. Which market would likely be more lucrative for Delta and which for United? Uruguay $5.00 per gallon $0.50 per contact $35,000 $1.25 $1.25 Paraguay $8.00 per gallon $0.20 per contact $50,000
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Based on the data provided it seems that the market in Uruguay would likely be more lucrative for De... View the full answer
Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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