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Each Tuesday. Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $125...

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Accounting

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Each Tuesday. Ryan Airlines reduces its one-way ticket from Fort Wayne to Chicago from $125 to $25. To receive this special $25 price, the customer must buy a round-trip ticket. Ryan has a nonrefundable 30% penalty fare for cancellation; it estimates that about eight-tenths of 1% will cancel their reservations. The airline also estimates this special price will cause a passenger traffic increase from 500 to 900 . Ryan expects revenue for the year to be 53.8% higher than the previous year. Last year, Ryan's sales were $489,000. To recelve the special rate, Janice Miller bought two round-trip tickets. On other airlines, Janice has paid $95 round trip (with no cancellation penalty). Required: a. Calculate the percent discount Ryan is offering. Note: Round to the nearest hundredth percent. b. Calculate the percent passenger travel will increase. c. Calculate the sales for new year. d. Calculate Janice's loss if she cancels one round-trip flight. e. Approximately how many more cancellations can Ryan Airlines expect (after Janice's cancellation)? Note: Round down your answer to nearest whole number

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