146. CSO: 1C1a LOS: 1C1a
Manchester Airlines is in the process of preparing a contribution margin income
statement that will allow a detailed look at its variable costs and profitability of
operations. Which one of the following cost combinations should be used to evaluate the
variable cost per flight of the company’s Boston-Las Vegas flights?
a. Flight crew salary, fuel, and engine maintenance.
b. Fuel, food service, and airport landing fees.
c. Airplane depreciation, baggage handling, and airline marketing.
d. Communication system operation, food service, and ramp personnel.
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