Question
The average cost of a seat on a chartered bus to the nation's capital is $250. The bus has 5 tickets that no one purchased.
The average cost of a seat on a chartered bus to the nation's capital is $250. The bus has 5 tickets that no one purchased. On the morning of departure, a ticket holder brings his two children and offers to pay the company $300 for two extra tickets for his children to ride on the bus. If the marginal cost to ride the bus is $30, should the bus driver accept the $300?
The average cost of a seat on a chartered bus to the nation's capital is $250. The bus has 5 tickets that no one purchased. On the morning of departure, a ticket holder brings his two children and offers to pay the company $300 for two extra tickets for his children to ride on the bus. If the marginal cost to ride the bus is $30, should the bus driver accept the $300?
Yes, because he can get the extra $200 later on.
No, because it would not be fair to the people who paid $250 per ticket.
Yes, because the marginal cost is less than the sale of each additional ticket
You cannot determine this as not enough information is given.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
