Scenario 15-5 An Airline Knows That There Are Two Types of Travelers

question 253

Multiple Choice

Scenario 15-5
An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc.
-Refer to Scenario 15-5. How much profit will the airline earn if it sets the price of each ticket at $300?

• A)-$15,000
• B)-$5,000
• C)$25,000
• D)$45,000

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Definitions:

Hepatic Flexure

The bend of the colon by the liver, where the ascending colon turns to become the transverse colon.

Transverse Colon

The middle section of the large intestine, running horizontally across the abdomen from right to left.

Palatine Tonsils

A pair of soft tissue masses located at the rear of the throat, part of the immune system.

Soft Palate

The flexible, muscular part at the back of the roof of the mouth, playing a crucial role in swallowing and speech.