An Airline Is Considering Adding a Flight from Chicago to Sioux

Multiple Choice

An airline is considering adding a flight from Chicago to Sioux Falls.Total cost of the flight is $5,500.Variable cost is $2,000.Revenue from the flight is expected to be $3,000.Should the flight be added?

A) No, the revenue ($3,000) is below the cost ($5,500.)  
B) No, the addition to profit is very small and not worth the effort.
C) Yes, profit increases by $1,000 ($3,000 − $2,000.)  
D) Yes, profit increases by $3,000.