Question: Southern Airways, a small regional airline, has a daily late evening flight into Atlanta. The plane must be in Atlanta at 8:00 A.M. each morning for a flight to Richmond, Virginia. Unfortunately, the charge for a plane remaining overnight in Atlanta is $500. One alternative is to schedule a 9:00 P.M. flight to Gainesville, Florida (a one-hour trip), and a 6:00 A.M flight back to Atlanta. There is no charge for the overnight stay in Gainesville. However, the flights to and from Gainesville will average only about ten passengers each at a one-way fare of $50. The operating cost of the plane is $600 per hour. The company’s total fixed costs (which are unaffected by the decision to be made here) are allocated to each flight at the rate of $300 per hour. Should the plane stay in Atlanta overnight, or should flights to and from Gainesville be scheduled? Explain your decision.