Question

Scenario 15-5 An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc. Refer to Scenario 15-5. How much profit will the airline earn if it sets the price of each ticket at $300

Answer 1

Profit= $25000

Step-by-step explanation:

Giving the following information:

Tere are 100 business travelers who will pay $600 for a ticket while 50 vacationers will pay $300 for a ticket. T

There are 150 seats available on the plane.

The cost to the airline of providing the flight is $20,000.

Price= $300

Profit= ($300*150) - 20000= $25000