Chapter 6 - “Analyzing Managerial Decisions: United Airlines”After looking for the original source...

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Chapter 6 - “Analyzing Managerial Decisions: United Airlines”

After looking for the original source document that was referred to in the case to no avail, I am going to provide you with my introduction to this case. The case is really asking you to consider if United Airlines should shut down one of its flights because it is not meeting its cost on that flight (i.e. marginal analysis). You could consider this from both a short and long-run perspectives. Over the short-run, the easy answer might be yes, when we are just looking at the one flight and not considering that there could be connections occurring outside of this flight that could be profitable. In addition, you may want to consider the sunk costs that are embedded in this case. So, on one hand, you have to discuss the point-to-point flight and, on the other, you have to consider any additional profits that this firm might make as a result of keeping the flight.

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“Analyzing Managerial Decisions: United Airlines”
United Airlines is the airline looking for capitalization on the ability of it providing air service to the consumers. Similar to many other airlines, there are challenges for being profitable and creative in the dynamic market. Herein the creativity is about creation of flights of analysis of the cost in association with the service provided. This case study talks about the situation where the profits are declining and the cost of operating was increasing and the decision is about whether the airline must run this specific flight that is between the San Francisco and Washington DC or not. 
Herein, the case study is about the discontinuation or not for the flight between the San Francisco and Washington DC. As per my opinion, this is not the best available option necessarily. As use on the marginal analysis is warranted herein and as United Airlines needs to check all the other WSJ calculations for ensuring the level of accuracy. The identification process regarding the costs and benefits is known as the marginal analysis that uses varying alternatives by the examination of the incremental effect on total cost and total revenue as resulted from a minor variation in the alternative’s input/output (Key, 1997) which gives me clear indication that if marginal analysis was conducted by WSJ was accurate fully,

Chapter 6 - “Analyzing Managerial Decisions: United Airlines” After looking for the original source document that was referred to in the case to no avail, I am going to provide you with my...

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