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Paxi provides a shuttle service between the train station and the airport and charges a flat fee of $54 per trip. Variable costs are $21
Paxi provides a shuttle service between the train station and the airport and charges a flat fee of $54 per trip. Variable costs are $21 per trip and fixed costs are $8,000. Pat, the owner, believes that if the price were decreased by $10 per trip that sales would increase significantly. If current profit is $20,760, how many additional trips would Paxi need to make to maintain the same level of profitability?
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