A regional airline company estimated four years ago that each pound of aircraft weight adds $30 per year to its fuel expense. Now the cost of jetfuel has doubled from what it was four years ago. A recent engineering graduate employed by the company has made a recommendation to reduce fuel consumption of an aircraft by installing leather seats as part of a “cabin refurbishment program.” The total reduction in weight would be approximately 600 pounds per aircraft. If seats are replaced annually (a worst-case situation), how much can this airline afford to spend on the cabin refurbishments?What nonmonetary advantages might be associated with the refurbishments? Would you support the engineer’s recommendation?
A regional airline company estimated four years ago that each pound of aircraft weight adds $30 per year to its fuel expense. Now the cost of jet
fuel has doubled from what it was four years ago. A recent engineering graduate employed by the company has made a recommendation to reduce fuel consumption of an aircraft by installing leather seats as part of a “cabin refurbishment program.” The total reduction in weight would be approximately 600 pounds per aircraft. If seats are replaced annually (a worst-case situation), how much can this airline afford to spend on the cabin refurbishments?What nonmonetary advantages might be associated with the refurbishments? Would you support the engineer’s recommendation?
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