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    Blue Yonder

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    suryaa
    Blue Yonder Airlines overbooked a flight from Seattle to New York with a capacity of 250 people but sold 270 tickets. The airline will earn a profit of $300 per ticket sold up to 250 passengers but must pay $350 in compensation for each additional passenger over the 250 capacity. The variable cost per passenger is $30 so the airline's profit depends on how many of the 270 ticket holders show up for the flight.

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    Blue Yonder

    Uploaded by

    suryaa
    544 views1 page
    Blue Yonder Airlines overbooked a flight from Seattle to New York with a capacity of 250 people but sold 270 tickets. The airline will earn a profit of $300 per ticket sold up to 250 passengers but must pay $350 in compensation for each additional passenger over the 250 capacity. The variable cost per passenger is $30 so the airline's profit depends on how many of the 270 ticket holders show up for the flight.

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    Blue Yonder Airlines overbooked a flight from Seattle to New York with a capacity of 250 people but sold 270 tickets. The airline will earn a profit of $300 per ticket sold up to 250 passengers but must pay $350 in compensation for each additional passenger over the 250 capacity. The variable cost per passenger is $30 so the airline's profit depends on how many of the 270 ticket holders show up for the flight.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    544 views1 page

    Blue Yonder

    Uploaded by

    suryaa
    Blue Yonder Airlines overbooked a flight from Seattle to New York with a capacity of 250 people but sold 270 tickets. The airline will earn a profit of $300 per ticket sold up to 250 passengers but must pay $350 in compensation for each additional passenger over the 250 capacity. The variable cost per passenger is $30 so the airline's profit depends on how many of the 270 ticket holders show up for the flight.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    The Blue Yonder Airlines flight from Seattle to New York has a capacity of 250 people.

    The airline sold


    270 tickets for the flight at a price of $300 per ticket. Tickets are nonrefundable. The variable cost of
    flying a passenger (mostly food costs and fuel costs) is $30 per passenger. If more than 250 people show
    up for the flight, the flight is overbooked, and Blue Yonder must pay overbooking compensation of $350
    per person to each overbooked passenger. Develop a worksheet that computes Blue Yonder’s profit
    based on the number of customers who show up for the flight.

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