Business, 24.02.2020 16:59 mdakane3772

Each Tuesday, Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $175 to $35. To receive this special $35 price, the customer must buy a round-trip ticket. Ryan has a nonrefundable 20% penalty fare 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 traffic increase from 500 to 700. Ryan expects revenue for the year to be 53.6% higher than the previous year. Last year, Ryan’s sales were $481,000. To receive the special rate, Janice Miller bought two round-trip tickets. On other airlines, Janice has paid $155 round trip (with no cancellation penalty).
a. Calculate the percent discount Ryan is offering.
Percent discount %
b. Calculate the percent passenger travel will increase.
Percent passenger travel %
c. Calculate the sales for new year.
Sales for new year $
d. Calculate Janice's loss if she cancels one round-trip flight.
Janice's loss $
e. Approximately how many more cancellations can Ryan Airlines expect (after Janice's cancellation)? (Round down your answer to nearest whole number.)

No of cancellations people

Answers: 3

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Each Tuesday, Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $175 to $35....

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