Profit as an Independent Variable:
The Case of Business Aircraft


Author: Douglas Howarth

Publication Date: March 1, 2007

Published by: Journal of Parametrics

Description:

Aeronautical engineers often try to optimize commercial aircraft to factors such as maximum cruise speed or minimum drag. But, when we step back and analyze the problem more deeply, we understand that if we are in business to make money, we ought to solve for profitability instead. In this paper, we examine how to solve for maximum profit, give how the costs we face, and how the market reacts to the features offered to it as it considers its demand limitations.

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