Product Differentiation Strategy

Requirement 2. For eachdecision, select what information the management accountant can provide about the source of competitive advantage for these firms

For Western Airlines investigating market demand for a unique design forfirst-class seating in the form of cabins on its route from Los Angeles toHonolulu, management accountants can provide the followinginformation: (choose which 5 are correct.)

The cost of any additional staffing and amenities necessary for first-class service

Cost of modifying planes or purchasing new planes to accommodate for the additional first-class seating

Market demand for first-class service from Los Angeles to Honolulu

Premium price that passengers would be willing to pay for first-class service

Cash needed to modify or purchase planes and market new concept

Historical information about shareholder wealth

Financial comparison of added first class seats to lost coach seats