Green Duck Airways is considering adding a new flight between Portland and Seattle. Revenue from the flight is expected to be $8,000. The total cost of the flight is $9,500, and the variable cost is $4,000. Should the airline add this flight?
A. No, because the revenue of $8,000 is less than the cost of $9,500.
B. No, the addition to profit is too small to devote the aircraft to the flight.
C. Yes, profit increases by $4,000.
D. Yes, profit increases by $2,500.
Answer: C
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