Question
Suppose a Whale-Watching Trip in Alaska costs Orca-Spotters Tours $800 per run. Each Whale-Watching Trip can hold 25 tourists, meaning that the cost per seat
Suppose a Whale-Watching Trip in Alaska costs Orca-Spotters Tours $800 per run. Each Whale-Watching Trip can hold 25 tourists, meaning that the cost per seat is $32.00 regardless of how many people are on board. Assume that Orca-Spotters Tours would like to maximizeprofits.
Orca-Spotters Tours charges $50.00 per ticket purchased in advance. If they sell 21 tickets in advance, how much revenue does the companygenerate?
What is Orca-Spotters Tours's profit on thistour?
Suppose that there are customers willing to pay no more than $20.00 to fill an empty seat the day of the tour (referred to as standby tickets). What is Orca-Spotters Tours's revenue if it sells 4 standby tickets for $20.00 each in addition to the advanced ticketsales?
If it sells standby tickets, what is Orca-Spotters Tours'sprofit?
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