​ -An Airline Is Considering Adding a Flight from Chicago to Chicago

Multiple Choice

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-An airline is considering adding a flight from Chicago to Sioux Falls.Revenue from the flight is expected to be $3,000.The total cost of the flight is $5,500, and the variable cost is $2,000.Should the airline add this flight?

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.