YY Airlines flight from Seattle to New York has a capacity of 250 people. The airline sold 275 tickets for

the flight at a price of $300 per ticket. Tickets are non refundable. The fixed cost of flying the plane

(even if there were no passengers) is $5000. Variable cost of flying a passenger (mostly food costs

and additional fuel costs) is $25 per passenger. If more than 265 people show up for the flight, the flight

is overbooked YY must pay overbooking compensation of $450 per person to each overbooked

passenger. Find the profit based on the number of customers who show up for flight

Question

Tristian Mueller

Mathematics

6 October, 10:09

YY Airlines flight from Seattle to New York has a capacity of 250 people. The airline sold 275 tickets for

the flight at a price of $300 per ticket. Tickets are non refundable. The fixed cost of flying the plane

(even if there were no passengers) is $5000. Variable cost of flying a passenger (mostly food costs

and additional fuel costs) is $25 per passenger. If more than 265 people show up for the flight, the flight

is overbooked YY must pay overbooking compensation of $450 per person to each overbooked

passenger. Find the profit based on the number of customers who show up for flight

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Answers (1)

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Mckinley Reed · Answer 1

First the airline owes 6750 in compensation next 25 dollars per 250 passengers = 6250 total deductions = 13000 plus 5000 base cost = 18000 now 300$ times 250 passengers = 75000 deduct 18000 from 75000 = 57000 dollars profit