Question 1 (1 point) Eagle airlines owns and operates 3 small twin engine airplanes in a small community in eastern United States. It offers both scheduled and charter flights. It is considering expanding its fleet with a used Piper Seneca offered for $95K. Eagle Airlines believes it can successfully counter at $85K to $90K. An investment alternative to the fourth plane would be a fixed income instrument paying 8%. Projected financial impact of the new aircraft is calculated as follows: Total Revenue = Revenue Charters + Revenue Schedule Flights = (%charter Hours CharterPrice)+(1- %charter) Hours TicketPrice Passengers Capacity FinanceCost = (Price %financed Rate) TotalCost Hours OperatingCost+Insurance+FinanceCost Profit TotalRevenue TotalCost From a one-way sensitivity analysis, which inputs are positively correlated with profit? A B C D E F 123456 Base Low High Hours Flown Capacity 800 500 1000 50% 40% 60% Ticket Price $100 $95 $108 Charter Price $325 $300 $350 Charter Proportion 50% 45% 70% 7 Operating Cost $245 $230 $260 8 Insurarice $20,000 $18.000 $25,000 9 Aircraf: Price $87.500 $85.000 $90.000 10 Interest Rate 11.5% 10.5% 13.0% 11 Proportion Financed 40% 30% 50% 12 Number of Passenger Seats 5 Capacity of Scheduled Flight-