A Tour Company Is Planning a Bus Trip to a Local

question 6

Multiple Choice

A tour company is planning a bus trip to a local museum. The company will lease a bus from a local bus owner for $400 and estimates that it will spend $15.00 per person for admission and lunch. Which of the following volume/price alternatives will allow the firm to avoid losing money on the trip?

• A) 20 customers at $30.00 each.
• B) 30 customers at $27.50 each.
• C) 40 customers at $25.00 each.
• D) 50 customers at $22.50 each
• E) 60 customers at $20.00 each.

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Definitions:

Shopping Products

Goods for which consumers will spend time and effort to compare quality, price, and perhaps style between different sellers before making a purchase.

Impulse Purchases

Unplanned buying decisions made by consumers on the spot, often triggered by emotions or the strategic placement of products.

Minimum of Effort

A principle suggesting that individuals, systems, or organizations naturally tend to select the path or decision that requires the least amount of work or effort.

Specific Effort

Specific effort refers to the targeted exertion or dedicated work directed towards accomplishing a particular task or achieving a specific goal.