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Each Tuesday, Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $125 to $20. To receive this special $20 price, the customer
Each Tuesday, Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $125 to $20. To receive this special $20 price, the customer must buy a round-trip ticket. Ryan has a nonrefundable 25% penalty fare for cancellation; it estimates that about eight-tenths of 1% will cancel their reservations. The airline also estimates this special price will cause a passenger traffic increase from 500 to 900. Ryan expects revenue for the year to be 54.2% higher than the previous year. Last year, Ryan's sales were $484,000. To receive the special rate, Janice Miller bought two round-trip tickets. On other airlines, Janice has paid $100 round trip (with no cancellation penalty). a. Calculate the percent discount Ryan is offering. (Round to the nearest hundredth percent.) Answer is complete and corr Percent discount 84.00 % b. Calculate the percent passenger travel will increase. Answer is complete and cor Percent passenger travel 80 % c. Calculate the sales for new year. Sales for new year d. Calculate Janice's loss if she cancels one round-trip flight. Janice's loss e. Approximately how many more cancellations can Ryan Airlines expect (after Janice's cancellation)? (Round down your answer to nearest whole number.) No. of cancellations people
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