Coastal Airlines has a significant presence at the San Jose International Airport and therefore operates the Emerald Club, which is across from Gate 36 in the terminal. The Emerald Club provides food and business services for the company's frequent flyers. Management is exploring whether to close the club and expand the seating area for Gate 36. Which of the preceding expenses would the airline classify as unavoidable?
a. sales commission
b. catering cost in the Club
c. receptionist and supervisory salaries of the Club
d. airport fees
2.In deciding on whether to keep or drop a segment, the segment should be kept as long as its contribution margin exceeds:
all costs.
- all variable costs.
- avoidable fixed costs.
- allocated common costs.