Jet Blue has an evening flight from Orlando

Jet Blue has an evening flight from Orlando

Jet Blue has an evening flight from Orlando to San Jose California with an average of 150passengers and a return flight from San Jose to Orlando Fla, the next afternoon with an averageof 120 passengers. The plane makes no other trip. The charge for the plane to remain in SanJose overnight is $1,200 and zero in Orlando. The Airline is contemplating eliminating the nightflight out of Orlando and replacing it with a morning flight. The estimated number of passengersis 140 in the morning flight and 120 in the return afternoon flight. The one-way ticket for anyflight is $200. The operating cost of the plane for each flight is $11,000. The fixed costs for theplane are $3,000 per day whether it flies or not.a.Should Jet Blue replace its night flight from Orlando with a morning flight?b.Should Jet Blue remain in business?


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