Homework 3

Problem 1
Draw a one-way sensitivity analysis graph for operation cost for Eagle Airline. Please
note that the equation for total revenue from the lecture was:
Total Revenue = Revenue from Charters + Revenue from Scheduled flights
= (Charter Proportion * Hours Flown * Charter Price)
+ [(1-Charter Proportion) * Hours Flown * Ticket Price *
Number of Passenger Seats*Capacity of Sched Flights]
The values for the various variables are provided in PPT deck of the lecture.
(Note: Please show Operating Cost on the horizontal axis.)

Problem 2
Do a two-way sensitivity analysis for operation cost and hours of flown for Eagle Airline.
(Note: Please show Hours Flown on the horizontal axis.)