Each Tuesday, Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $136 to $25. To receive this special $25 price, the customer must buy a round-trip ticket. Ryan has a nonrefundable 20% penalty fare for cancellation; it estimates that about seven-tenths of 1% will cancel their reservations. The airline also estimates this special price will cause a passenger traffic increase from 400 to 900. Ryan expects revenue for the year to be 55.4% higher than the previous year. Last year, Ryan’s sales were $483,000. To receive the special rate, Janice Miller bought two round-trip tickets. On other airlines, Janice has paid $116 round trip (with no cancellation penalty). a. Calculate the percent discount Ryan is offering. b.e. Approximately how many more cancellations can Ryan Airlines expect (after Janice’s cancellation)?
Each Tuesday, Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $136 to $25. To receive this special $25 price, the customer must buy a round-trip ticket. Ryan has a nonrefundable 20% penalty fare for cancellation; it estimates that about seven-tenths of 1% will cancel their reservations. The airline also estimates this special price will cause a passenger traffic increase from 400 to 900. Ryan expects revenue for the year to be 55.4% higher than the previous year. Last year, Ryan’s sales were $483,000. To receive the special rate, Janice Miller bought two round-trip tickets. On other airlines, Janice has paid $116 round trip (with no cancellation penalty).
a. Calculate the percent discount Ryan is offering.
b.e. Approximately how many more cancellations can Ryan Airlines expect (after Janice’s cancellation)?
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