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8) Suppose you work as a financial analyst for a new airline, unfortunately named TSA...

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Finance

8) Suppose you work as a financial analyst for a new airline, unfortunately named TSA = Ted Striker Airlines(based on the CEOs favorite movie), which is considering running daily service to one of three possible destinations out of Youngstown-Warren Regional Airport. Destination A is Chicago, which is estimated to cost $12,000/day and generate $17,000/day in revenue; Destination B is Philadelphia, which is estimated to cost $8,000/day and generate $12,000/day in revenue be three different daily; Destination C is New York City, which is estimated to cost $20,000/day and generate $22,000/day in revenue. All fixed costs and other variables are constant.
a.(3) Calculate the daily profit margins (profit/revenue) and accounting profit associated with each destination.
b.(3) Calculate the daily economic profit associated with each destination.
c.(2) Given these calculations, which destination do you recommend TSA select? Briefly explain why.

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