Which of the following is an example of how a service firm might turn unused capacity into revenue using incremental analysis?
A)An instructor agrees to add an additional student to a class.
B)An accountant with no extra time agrees to do an extra client's tax return during busy season.
C)A manufacturing firm that rents assembly line space to a complementary company.
D)A train company uses a last-minute app to fill empty seats and makes long-term pricing decisions based on average revenue.

Question

Quizplus · Accepted Answer

An instructor adding an additional student to a class is an example of using unused capacity (an extra seat in the class) to generate additional revenue without significantly increasing costs.

Which of the Following Is an Example of How a Service