The manager of a downtown Chicago sightseeing tour company is concerned about overbooking for one of his bus tours. The bus has 15 seats but sometimes there are empty seats. His records show that about 20% of ticket holders do not show up for their tour. Tickets cost $10 and are non-refundable. If the manager overbooks the tour and more than 15 passengers show up, some of them will be bumped to a later tour. This bumping costs the company $25 in various expenses to keep the customer happy until the next tour. The manager wants to see what happens to profits if 18 reservations are accepted.

	A	B	C
1		Capital Tours
2		Tour Reservation System
3
4		Seats Available	15
5		Ticket Price per Seat	$10
6		Prob. of No-Show	0.2
7		Cost of Bumping	$25
8		Reservations Accepted	18
9
10		Passengers to Board	12
11
12		Ticket Revenue	$180
13		Opp. Cost of Empty Seats	$30
14		Cost of Bumping Passengers	0
15		Marginal Profit	$150
		MODEL

What formula should go in cell C14 of the worksheet to determine the Cost of Bumping Passengers?  (Click to select)  

=C5*MAX(C10,0)  

=MAX(C10-C4,0)  

=C5*MAX(C10,C4)  

=C5*MAX(C10-C4,0)