Question
Each Tuesday, Ryan Airlines reduces its one-way ticket from Ft Wayne to Chicago from $152 to $38. To receive this special $38.00 price, the customer
Each Tuesday, Ryan Airlines reduces its one-way ticket from Ft Wayne to Chicago from $152 to $38. To receive this special $38.00 price, the customer must buy a round-trip ticket. Ryan has a non-refundable 25% penalty far for cancellation; it estimates that about nine-tenths of 1% will cancel their reservations. The airline also estimates this special price will cause a passenger increase from 350 to 700. Ryan expects revenue for the year to be 54.3% higher than the previous year. Last year, Ryan's sales were $482,000. To receive the special rate Janice Miller bought 2 round-trip tickets. On other airlines, Janice has paid $127 round-trip (with no cancellation penalty)
A. Calculate the percent passenger travel will increase
B Calculate the sales for the new year
C Calculate Janice's loss if she cancels one round-trip flight
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