Search This Blog

Showing posts with label transportation. Show all posts
Showing posts with label transportation. Show all posts

Monday, October 5, 2015

Southwest Blue Airways provides air transportation services between Seattle and San Diego

Southwest Blue Airways provides air transportation services between Seattle and San Diego. A single Seattle to San Diego round-trip flight has the following operating statistics:

Fuel $7000
Flight Crew Salaries $5400
Airplane depriciation $2600
Variable cost per business class ticket $ 50
Variable cost pereconomy class ticket $ 40
Round trip ticket business class $ 550
Round trip ticket economy class $ 290

It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight.

a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 20% business class and 80% economy class tickets.
b. How many business class and economy class seats would be sold at the break-even point?

Click here for the solution: Southwest Blue Airways provides air transportation services between Seattle and San Diego

Saturday, July 11, 2015

1) The Dow Theory considers price movements in the Dow Jones industrial and transportation averages

1) The Dow Theory considers price movements in the Dow Jones industrial and transportation averages.
2) Behavioral finance suggests that
3) The Dogs of the Dow strategy suggests buying the lowest dividend yields of the Dow stocks.
4) "Resistance" for a stock suggests that supply will blunt further price increases.
5) Which of the following is not used in technical analysis?
6) A point-and-figure chart of an X-O chart tracks dividends and earnings.
7) If a stock meets a resistance level and penetrates that level, the implication is avoid the stock.
8) Long dark candlesticks suggests
9) Behavior finance explains dramatic price changes in securities markets as a tendency for investors to "herd."
10) Insider purchases of stock are considered bullish.
11) Behavioral finance asserts that emotional investing produces higher returns.
12) If a moving average of the Dow Jones industrial average crosses the Dow Jones industrial average,
13) The moving average convergence divergence indicator uses
14) Which of the following human emotions tend to affect investments decisions?
1. the pain of regret
2. following the crowd or "herding"
3. selective memory
15) Empirical evidence

Click here for the solution: 1) The Dow Theory considers price movements in the Dow Jones industrial and transportation averages