It should be noted that when considering marginal revenue versus marginal costs, marketers must ensure that marginal revenue exceeds marginal costs.
<h3>What is marginal revenue and marginal costs?</h3>
The marginal cost of production serves as the change in total cost that is bern incured as a result of making or producing one additional item.
Marginal revenue (MR) on the other hand serves as the incremental entity.
However, In equilibrium, marginal revenue equals marginal costs.
Learn more about marginal revenue at;
brainly.com/question/25623677
Answer:
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
Answer:
25 seats
Explanation:
Calculation to determine By how many seats should Super Discount overbook the fight
First step is to calculate the Critical ratio=
Using this formula
Critical ratio=Cu/Cu+Co
Where,
Cu represent cost of underetimating the demand =$134
Co represent the cost of overestimating the demand $263
Let plug in the formula
Critical ratio=$134/$134+$263
Critical ratio=$134/397
Critical ratio=0.3375
Second step is to find the z-score that yields a p-value of 0.3375 using excel's normsinv() function which gives us -0.4193.
Now let determine how many seats should Super Discount overbook the fight
Numbers of seats to overbook the fight=35+ (-0.4193 x 24)
Numbers of seats to overbook the fight= 35 - 10.0632
Numbers of seats to overbook the fight = 24.9368
Numbers of seats to overbook the fight = 25
(Approximately)
Therefore the numbers of seats that super discount airlines should overbook the flight is 25 seats.
