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)
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