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M7.2 Discussion: Keep or Discontinue a Flight Using Relevant…Homework

Only 2-4 paragraphs

Spirit Airlines presently has a daily flight from Minneapolis to Green Bay which accommodates presently the many Packer fans that live in both cities! The flight runs peak especially on weekends when the Packers have a football game at home on Lambeau Field! (Note that Lambeau Field is the main attraction in Green Bay.) 

Address the following questions:

  1. Consider and individually list the costs that Spirit Airlines would incur on each flight from Minneapolis to Green Bay.
  2. As part of your listing, identify each individual cost as either a variable or a fixed cost.
  3. Spirit is trying to decide whether this flight should be dropped or not. Determine (specify) which of the costs are likely to be saved if this flight is dropped. Set up your initial response as follows:
    • Cost
    • Variable or Fixed Cost
    • Cost Saved if Flight is Dropped
    • Rationale  


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