Choose Two Publicly-Held Organizations. One Organization Must

Name:Institutional affiliationManaging Fixed and Variable Costs for Organization Delta Air LinesDelta Air Lines has high fixed costsHeadquarters are at Hartsfield–Jackson Atlanta International Airport in Atlanta, Georgia. 5,400 daily flights319 destinations54 countries Delta Air Lines The company has more fixed cost than variable costsFixed costs include:Cost of fuel LabourMaintenance Airport charges Cost reduction approaches Energy hedging Investing in refineries Efficient aeroplanes Reducing unprofitable routes and increasing profitable routes Leasing instead of buying new aircrafts AEPAEP has high variable costsServes over 4.8 million customers in the USA Operates 60 power plants. AEP Produces about 38000MW Fuel is the leading cost AEP costsVariable costs of EAP include:FuelDelivery Emission cost Fixed costsLabourDistribution infrastructure Power generation plant Maintenance of equipment Cost saving measures Investment in renewable sources of power such as wind Reducing the number of permanent employees and only hire when there is need for extra labour Using efficient generators to reduce the cost of producing a unit of electricity Automation Ownership of distribution network operating cost vs. revenue Recommendation AEP should own a refinery as Delta to reduce fuel costAEP should increase its temporary employees Delta air lines should consider leasing instead of purchasing new air crafts References Gibson, W., & Morrell, P.