Located in Atlanta, Ga., Delta Air Lines is the largest airline in the U.S. Of the many routes that Delta flies, consider the Orlando to Atlanta route. Currently, Delta has 15 daily nonstop flights from Orlando to Atlanta. Suppose that Delta has only the following daily costs for this route. [Click on the table to open a PDF viewable version in another tab.]
Cast Rem
Loan payments on four Boeing 737 jets
Jet fuel charges
Fees paid to the airport for the ticket counter and gates
Pilots' and flight attendants' wages and benefits
Food and beverage costs for in-flight service
Daily
Amount
$10,000
$15,000
$5,000
$50,000
$25,000
Airports charge airlines for space at the airport, including the ticket counter where passengers obtain tickets and check luggage. Airlines rent this space, regardless of the number of flights. Using this fact and the table above, on the Orlando to Atlanta route, Delta's daily variable cost per nonstop flight is _____, and its daily fixed cost per nonstop flight is _____
$5,000...$1,000
$6,000...$1,000
$5,000...$2,000
$6,000...$2,000