Jim Johnson Operates a Bus Service to Take College Students

question 55

Essay

Jim Johnson operates a bus service to take college students to "The Big City" on Friday night and bring them back to school on Sunday night. The bus has 45 seats but sometimes there are empty seats. His records show that about 5% of ticket holders do not show up for their ride. Tickets cost $20 and are non-refundable. If Jim overbooks the bus and more than 45 passengers show up, some of them will be bumped and have to miss the trip. This bumping costs the company $40 because Jim has a double-your-money back policy for bumped passengers. Jim wants to see what happens to profits if 48 reservations are accepted. What formulas should go in cell C10 - C15 of the worksheet?

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Definitions:

Financing

The act of providing funds for business activities, making purchases, or investing, often involving loans, equity investments, or other forms of financial support.

Pledging

The act of committing or promising to support something, often by donating money or another resource.

Finance Company

A business that provides loans to individuals or organizations, making profits from the interest charged on these loans.

Receivables

Money owed to a company by its clients or customers for goods or services provided on credit.