1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
snow_tiger [21]
3 years ago
13

Problem 11-5 Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The a

irline knows from past history that an average of 40 customers (with a standard deviation of 26) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $140. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $270. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost. By how many seats should Super Discount overbook the flight? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round your answer to the nearest whole number.) Overbooked by passengers
Business
1 answer:
Goshia [24]3 years ago
3 0

Answer:

29 Seats

Explanation:

Calculation to determine By how many seats should Super Discount overbook the flight

First step is to calculate the Critical ratio using this formula

Critical ratio=Cu/Cu +Co

Where,

Cu represent cost of underestimating the demand =$140

Co represent the cost of overestimating the demand =$270

Let plug in the formula

Critical ratio=$140/$140+$270

Critical ratio=$140/$410

Critical ratio=0.34146

Second step is to use Excel's NORMSINV() function to find thez-score that yields a p-value of 0.34146 which gives us -0.40848

Now let determine By how many seats should Super Discount overbook the flight

Numbers of seats to overbook the flight= 40 + (-0.40848 x 26)

Numbers of seats to overbook the flight=40 - 10.62048=

Numbers of seats to overbook the flight=29.37952

Numbers of seats to overbook the flight=29.4 seats (Approximately)

Numbers of seats to overbook the flight=29 seats (Rounded to the nearest whole number)

Therefore By how many seats should Super Discount overbook the flight is 29 seats

You might be interested in
A group of sellers who agree to restrict their collective output in order to drive up prices above marginal costs is a:
Salsk061 [2.6K]

A group of sellers who agree to restrict their collective output in order to drive up prices above marginal costs is known as a:

  • <u>Cartel</u>

According to the given question, we are asked to show the term which can be best used to <em>describe </em>a group of sellers who make an agreement to <em>reduce their collective output</em> so that price of goods would increase above their marginal costs.

As a result of this, we can see that this group of people in the business world are known as cartel because they behave unethically so that they could have increased profit on sales.

Read more here:

brainly.com/question/15294015

3 0
2 years ago
Company Earnings per Share Market Value per Share 1 $ 11.00 $ 176.00 2 8.00 78.40 3 6.00 77.40 4 35.00 203.00 Compute the price-
babymother [125]

Answer:

16

9.8

12.90

5.8

Explanation:

The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm

price to earning ratio = market value per share / earnings

1 = 176/11 = 16

2. 78.40 / 8 = 9.8

3. 77.40 / 6 = 12.90

4. 203/35 = 5.8

3 0
3 years ago
A study by the Environmental Protection Agency looked at the costs and benefits of the Clean Air Act from 1970 to 1990. This stu
qwelly [4]

Answer: d. 44 times higher

Explanation:

The benefits of cleaner air was $22 trillion and the cost of reducing pollution was $500 billion.

The number of times that you would have to multiply this cost of reducing pollution to get to the benefits of cleaner air is:

= 22 trillion / 500 billion

= 22,000 billion / 500 billion

= 44 times higher

5 0
3 years ago
Flint Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2018 at a
Salsk061 [2.6K]

Answer:

JOURNAL ENTRY :

Unrealized holding loss on purchase commitment - - - - - $48,700 Dr.

Estimated liability on purchase commitment ($990,700 - $942,000) - - - - 48,700 Cr.

Explanation:

Given the following :

Agreed purchase price of raw materials in 2018 = $990,700

Market value of raw material at 31, December 2018 = $942,000

JOURNAL ENTRY :

Unrealized holding loss on purchase commitment - - - - - $48,700 Dr.

Estimated liability on purchase commitment ($990,700 - $942,000) - - - - 48,700 Cr.

7 0
3 years ago
the cost of quality has two components: the cost of good quality. the costs for good quality are the cost of monitoring and prev
Marta_Voda [28]

Answer: Quality is never costless because monitoring and prevention have costs

Explanation:

The cost of quality has two parts which are the cost of prevention and the cost of failure. The cost of quality simply refers to the sum of the prevention cost and the cost of failure.

It should be noted that spending more on prevention helps in reducing the cost of failure. According to experts, quality is is never costless because monitoring and prevention have costs.

8 0
3 years ago
Other questions:
  • Suppose you have a choice between investing in a savings account that pays an 8.6% APR, compounded monthly (Bank Monthly) and on
    12·1 answer
  • he Snella Company reports 2015 Pre-tax Net Income of $10,000. The following items exist:Premiums Paid for Key Officer Life Insur
    8·1 answer
  • A new accountant at Marin Inc. is trying to identify which of the amounts shown below should be reported as the current asset "C
    10·1 answer
  • What is it called when demand and supply are equal in price and quantity?
    13·1 answer
  • At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally
    7·1 answer
  • The following information pertains to Eagle Co.'s Year 5 sales: Cash Sales Gross $ 80,000 Returns and allowances 4,000 Credit sa
    7·1 answer
  • The future of work is characterized by (choose all that apply):
    11·1 answer
  • Financial aspects of employment
    15·1 answer
  • Illustrate how a liberalized global economy can influence upon natural resources concerning the granting of logging franchise ri
    9·1 answer
  • Given the following history, use a three-quarter moving average to forecast the demand for the third quarter of this year. Note,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!