Jim Johnson Operates a Bus Service to Take College Students

question 67

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.
$\begin{array}{|c|c|c|c|}\hline & \mathrm{A} & \text { B } & \mathrm{C} \\\hline 1 & & \text { Jim's Big City Bus } & \\\hline 2 & & \text { Reservation System } & \\\hline 3 & & & \\\hline 4 & & \text { SeatsAvailable } & 45 \\\hline 5 & & \text { Ticket Price per Seat } & \$ 20 \\\hline 6 & & \text { Prob. of No-Show } & 0.05 \\\hline 7 & & \text { Cost of Bumping } & \$ 40 \\\hline 8 & & \text { Reservations Accepted } & 48 \\\hline 9 & & & \\\hline 10 & & \text { P assengers to Board } & 47 \\\hline 11 & & & \\\hline 12 & & \text { Ticket Revenue } & \$ 960 \\\hline 13 & & \text { Opp. Cost of Empty Seats } & 0 \\\hline 14 & & \text { Cost of Bumping Passengers } & \$ 80 \\\hline 15 & & \text { Marginal Profit } & \$ 880 \\\hline & & \text { MODEL } & \\\hline\end{array}$

What formulas should go in cell C10 ? C15 of the worksheet?

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Definitions:

Institutional Racism

Systemic policies or practices within organizations and institutions that result in unequal treatment or outcomes for people of different races.

Mortgage Rates

The interest rate charged on a loan used to purchase a home, which can affect the overall cost of the loan and monthly payments.

Nonwhites

Nonwhites is a term used to describe individuals who are not identified as white, encompassing a broad range of racial and ethnic identities.

Working Poor

Individuals or families who are employed but whose earnings are not sufficient to meet a standard of living that is considered acceptable or comfortable.