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xeze [42]
3 years ago
10

For a particular flight from Dulles to SF, USAir uses wide-body jets with a capacity of 430 passengers. It costs the airline $4,

000 plus $60 per passenger to operate each flight. Through experience, USAir has discovered that if a ticket price is T, then they can expect (430 - 0.58T) passengers to book the flight. Determine the ticket price, T, that will maximize the airline's profit.
Business
1 answer:
guajiro [1.7K]3 years ago
6 0

Answer:

$370.69

Explanation:

Given the following :

Capacity (n) = 430

Cost incurred by airline per flight = $4000 + $60 per passengers

If ticket price = T ; (430 - 0.58T) are expected to book.

Determine the ticket price, T, that will maximize the airline's profit.

Profit = Revenue earned - cost incurred

Revenue earned = capacity * price = nT

Cost incurred = $4000 + $60n

Profit = nT - (4000 + 60n)

If ticket price = T ; (430 - 0.58T) are expected to book. Then n = (430 - 0.58T)

Profit = (430 - 0.58T)T - ($4000 + 60(430 - 0.58T))

Profit = 430T - 0.58T^2 - ($4000 + 25800 - 34.8)

Profit = 430T - 0.58T^2 - 4000 - 25800 + 34.8

Profit (P) = - 0.58T^2 + 430T −29834.8

Taking the first derivative of P

P' = 2(-0.58T) + 430

P' = - 1.16T + 430

Hence solve for price (T) when P' = 0

0 = - 1.16T + 430

1.16T = 430

T = 430 / 1.16

T = 370.68965

Price = $370.69

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Alekssandra [29.7K]
<span>It is definitely possible for a chemical company to produce a certain product through a thermodynamically unfavored process. An example of this process is endothermic reaction. The word endothermic means “taking in heat.” A constant input of energy, often in the form of heat, will keep an endothermic reaction going. For instance, an instant cold ice pack can get cold without putting it in the fridge or freezer. How is that? Endothermic chemical reaction.</span>
4 0
3 years ago
Sectoral shifts, frictional unemployment, and job searches Suppose the world price of steel falls substantially. The demand for
TEA [102]

Answer:

fall

rise

frictional

b. Improving a widely used job-search website so that it matches workers to job vacancies more effectively

Explanation:

A fall in the price of steel would reduce the profitability of producing steel for steel producing companies. Hence, the supply of steel would fall. as a result, less labour would be needed, so the demand for labour would fall.

A fall in the price of steel would reduce the cost of producing cars and thus increase the production of cars. as a result, more labour would be employed to make cars.

Frictional unemployment is when labour is unemployed between the time he leaves his current employment and time he finds another. by improving on the job search website, workers would be matched faster with available jobs, this frictional unemployment would decrease.

7 0
3 years ago
Holliman Corp. has current liabilities of $407,000, a quick ratio of 1.90, inventory turnover of 4.50, and a current ratio of 3.
Sati [7]

Answer:

Cost of goods will be $4670325

Explanation:

We have given current liabilities = $407000

A quick ratio = 1.90

Current ratio is 3.40 and inventory turnover = 4.50

We know that current ratio is the ratio of current assets and current liabilities

So 3.4=\frac{current\ assets}{current\ liabilities}

So current assets = $1383800

Now quick ratio is equal to = \frac{current\ assets-inventory}{curtrent\ liabilities}

So 0.85=\frac{1383800-inventory}{407000}\\

Inventory = $1037850

Inventory turnover is given 4.5

So 4.5=\frac{cost\ of\ goods\ sold}{average\ inventory}

4.5=\frac{cost\ of\ goods\ sold}{1037850}

So cost of goods sold = 4.5×$1037850 = $4670325

5 0
3 years ago
Reserves consist of the currency in the​ _____ plus the balance on its​ _____ account at​ _____.
k0ka [10]

In the bank vault researve and at a Federal Reserve Bank

5 0
3 years ago
During March, the production department of a process operations system completed and transferred to finished goods 25,000 units
never [62]

Answer:

$2.10

Explanation:

The computation of the cost per equivalent unit for direct material is shown below:

= (Direct material cost + Beginning inventory cost) ÷ (equivalent units for the materials)

where,

Equivalent units would be

= Completed and transferred units + beginning work in progress units + additional units

= 25,000 + 110,000 + 30,000

= 165,000 units

And, all the other things would remain the same

= ($253,000 + $93,500) ÷ (165,000 units)

= $2.10

Since all the units are completed with 100% and we consider it same

7 0
3 years ago
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