Exhibit 12.4. The Following Questions Use the Information Below

question 8

Multiple Choice

Exhibit 12.4.
The following questions use the information below.
The manager of a Washington, DC 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.
-Using the information in Exhibit 12.4, what formula should go in cell C15 of the worksheet to determine the Marginal Profit?

• A) =C12+C13+C14
• B) =C12-C13-C14
• C) =C12-C14+C13
• D) =C12-(C13-C14)

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Definitions:

Claim

A statement or assertion that something is the case, typically without providing evidence or proof.

Reason

The power of the mind to think, understand, and form judgments logically.

Chosen Alternative

The option selected among several possibilities in a decision-making process, often considered the most suitable or preferred.

Counterargument

A collection of reasons or an assertion presented to counter an idea or theory proposed in a different argument.