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2. Because they have a full refund policy, it is common for customers not to show up. Airline company management is wondering if it would
2. Because they have a full refund policy, it is common for customers not to show up. Airline company management is wondering if it would make financial sense to overbook the flight and risk having not enough seats for all passengers that show up. In that case, the airline would find volunteers to give up their seats in exchange for a free ticket to the same destination on the next available flight. This would cost $100 for each overbooked passenger. Update your spreadsheet to account for overbooked passengers. What is the total profit if they fly with 64 passengers after having sold 72 tickets, assuming all 72 passengers show up? 2. Because they have a full refund policy, it is common for customers not to show up. Airline company management is wondering if it would make financial sense to overbook the flight and risk having not enough seats for all passengers that show up. In that case, the airline would find volunteers to give up their seats in exchange for a free ticket to the same destination on the next available flight. This would cost $100 for each overbooked passenger. Update your spreadsheet to account for overbooked passengers. What is the total profit if they fly with 64 passengers after having sold 72 tickets, assuming all 72 passengers show up
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