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

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Business

Helena Shepard

18 March, 01:19

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

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Abagail · Answer 1

Profit = $25000

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