Price must exceed cost to make a profit, but price cannot exceed the customer's perception of value or you will have difficulty selling the product. you are considering basic methods for determining price, either a cost-based approach or a value-based approach. although both cost and customer perceptions of value are important, for now you focus on one aspect. to make a decision, you ask the v. p. of finance and the v. p. of customer service for advice. listen to their opinions, and then decide which approach you would like to take to evaluate the best price. once you choose an approach, you will use it to determine what to do next?

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.