Question

It costs the company $1,200 to run a flight, empty or full, from its base airport to Airport X. Additionally, each passenger generates costs of $40. The regular ticket sells for $90. The plane holds 65 people, but is averaging only about 35 per flight. The sales director has proposed selling special tickets for $50 to persons who have not flown on TTA before. If the sales director's plan is implemented and 15 additional tickets are sold without affecting the regular business, the total profit on this flight would be most nearly:

Answer 1

Explanation:

35 x ($90- $40) + 15 x ($50- $40) - $1200 = ?

reg ticket net + spec ticket net, less cost = profit

Now simplify, and your answer is your profit