EXERCISE 6-17 (30 MINUTES)

4. Private colleges should benefit more than public colleges from increasing

enrollments because tuition is generally higher at private institutions;

therefore, more revenue will be received from additional students. The

revenue stream tends to be much more constant at public colleges,

which rely on funds provided by the state. This shields public colleges

somewhat during periods of decreasing enrollments, but prevents them

from realizing the full benefits of increasing enrollments.

Group Exercise 6-38

Parts 1, 2, and 3

Affected by

Variable

with respect

adding ser-

adding a

vice to an

to seats

airport?

flight?

filled?

Fuel and oil... Yes Yes Somewhat

Flying operations labor (flight

crews—pilots, copilots, naviga-

tors, and flight engineers) ... Yes Yes No

Passenger service labor (flight at-

tendants) ... Yes Yes Somewhat

Aircraft traffic and servicing labor

(personnel servicing aircraft and

handling passengers at gates,

baggage, and cargo)... Yes Yes Somewhat

Promotions and sales labor (res-

ervations and sales agents, ad-

vertising and publicity) ... Somewhat No No

Maintenance labor (maintenance

of flight equipment and ground

property and equipment)... Yes Somewhat No

Maintenance materials and over-

head... Yes Yes No

Ground property and equipment

(landing fees, and rental ex-

penses and depreciation for

ground property and equip-

ment) ... Yes Somewhat No

Flight equipment (rental expenses

and depreciation on aircraft

frames and engines) ... Yes Yes No

General overhead (administrative

personnel, utilities, insurance,

communications, etc.) ... Somewhat No No

Group Exercise 6-38 (continued)