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Evergreen Air Center Is the World's Largest Parking Lot for Unwanted

Question 108

Multiple Choice

Evergreen Air Center is the world's largest parking lot for unwanted commercial aircraft.Airlines pay from $750 to $5,000 monthly for the storage services provided by Evergreen.Prior to September 2001,the company had 140 discarded airplanes at its Arizona facilities and was growing at a rate of about six planes monthly with about two per month sold for parts and/or scrap metal.After calamity struck the airline industry in September 2001,the airlines retired over 1,000 planes,many of which have found their way to Evergreen.Now the actual number of planes stored at Evergreen differs significantly from the prediction based on previous behavior in effect before September 2001.This difference is referred to as the __________.


A) contribution margin
B) planning gap
C) marginal trend
D) breakeven point
E) sales differential

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