Market research carried out by the company indicates that at a price of 50 demandwould...
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Market research carried out by the company indicates that at a price of 50 demandwould be zero, but that for every 5 fall in price demand would increase by 10passengers. d) Calculate the price at which profit will be optimised, and identify the profit made atthat price. e) Identify the profit or loss that would be made if passengers were to be charged35, or if a price were to be charged to attract 50 passengers. Assume that one such excursion has attracted 40 expressions of interest at a priceof 30 and that no bookings have yet been confirmed. The company are nowapproached by a hotel wishing to book seats for 20 passengers, and asking for adiscount for each passenger. f) Calculate the maximum discount the company should be prepared to offer fromthe current price of 30. g) Briefly explain THREE non-financial factors Gr8 Days Out should consider indeciding
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