An airline maintains a daily schedule between San Francisco and
Honolulu. The airplanes used for this route have a seating capacity
of 180. The fixed cost of making a one-way flight between the two
cities is $8,000. It includes the cost of gasoline, wages, landing
fees, and other lump sum expenses connected with the flight, but it
does not include the general overhead expenses of the airline. The
average ticket price is $120. The unit variable cost is $20, which...