The average cost per seat on the 75-passenger Get-There-Safe Bus company's trip from Milwaukee to Minneapolis, on which no refreshments are served, is $37. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if it.

Question

Business

Caitlin Craig

6 March, 18:47

The average cost per seat on the 75-passenger Get-There-Safe Bus company's trip from Milwaukee to Minneapolis, on which no refreshments are served, is $37. In advance of a particular trip, three seats remain unsold. The bus company could increase its profit only if it.

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Answers (1)

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Paloma Odom · Answer 1

The answer is by charging lower price on remaining three ticket (any ticket price above $0)

Explanation:

As company is not giving any refreshment so it not incurring any variable cost. So here sales is equal to contibution and every single dollar revenue generated is a contribtion towards fixed cost and targeted profit. So by decreasing sale price on remaining tickets company will be able to sell them and this sale will result in more profit to the company.