Reference no: EM132958136

Question - A flight from Seattle to New York has a capacity of 225 people. The airline sold 250 tickets for the flight at a price of $300 per ticket. Tickets are non-refundable. The variable cost of flying a passenger (mostly food costs) is $30 per passenger. If more than 225 people show up for the flight, the flight is overbooked, and the company must pay overbooking compensation of $500 per person to each overbooked passenger.

A. Develop a model that computes the profit based on the number of customers who show up for the flight. Set the number of show-up to be 240.

B. Create one-way data table to show how your profit and overbook cost will depend on the number of passengers who show up (ranging from 200 through 250 in 10 increments).

C. Create  two-way data table to show how your profit will depend on the number of passengers who show up (ranging from 200 through 250 in 10 increments) and overbooking compensation per passenger (ranging from $300 through $700 in $100 increments).

D. The company is wondering at what price they should have sold the ticket in order to have a profit of $70,000 in this situation. Use Goal Seek to answer this question and write down your answer using one textbox.