Professor Elam

Today Delta asked 30,000 employees to voluntarily leave. Citing the need to cut costs, DAL ad UAL also are cutting back the size of their fleets.  Most of these workers are fixed costs, letting them go lowers the fixed cost line in the CVP chart, something we study in Cost Accounting. The firm will spend an additional $2 B on jet fuel costs.  They have not given up hope of earning a profit this year!