Question

The Blue Yonder Airline flight from Seattle to New York has a capacity of 250 people....

The Blue Yonder Airline 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. Assuming the number of customers who show up varies between 100 to 270, develop a worksheet that computes Blue Yonder’s profit when different number of customers show up.

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