To receive this special $60 price, the customer must buy a round-trip ticket. Ryan has a nonrefundable 30% 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 350 to 700. Ryan expects revenue for the year to be 55.3% higher than the previous year. Last year, Ryan’s sales were $485,000. To receive the special rate, Janice Miller bought two round-trip tickets. On other airlines, Janice has paid $100 round trip (with no cancellation penalty).
A.Calculate the percent passenger travel will increase.
B.Calculate Janice’s loss if she cancels one round-trip flight.
C.Approximately how many more cancellations can Ryan Airlines expect (after Janice’s cancellation)? (Round down your answer to nearest whole number.)