ACC 310F Lecture Notes - Lecture 1: Food Truck, Fixed Cost, W. M. Keck Observatory
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Compared to if nothing is done at all. (a) so, if a company is currently making 400k profit, and they figure that if they cut the price, they will then make 460k profit. Value of this option is the incremental profit of. If both increase the gyms revenue by 5k a month, but paying karate instructors cost. Ends up being the same idea as relevancy, because all options will have this past cost in common, so you just ignore it like the. 6 month contract and fire them, they still have to honor contract and pay them. But over time, they have the control over whether to continue yoga with the instructor"s contract runs out. (c) or an airline who released a schedule three months ahead of time. They have to have airplanes and runways for this time, but they have control over the cost of the tickets.
