Explanation Given Information: The operating cost of DC 10 − 10 is estimated to be $ 3885 per hour for up to 295 passengers. The fare of airline for each passenger is $ 100 per hour of flight. Formula used: The revenue is basically the amount that is obtained by selling x number of copies at a particular selling price as, R ( x ) = number of copies × selling price of each copy The profit is basically the amount that is obtained by subtracting the cost price from selling price as, P ( x ) = R ( x ) − C ( x ) Where the cost of the function is the sum of variable cost which depends on x and the fixed cost as, C ( x ) = m x + b Calculation: Consider the operating cost $ 3885 per hour, which means the cost function is constant and does not include variable cost, so, C ( x ) = 3885 The revenue is basically the amount that is obtained by x number of passenger fares at a particular selling price. Since, the fare of airline for each passenger is $ 100 per hour of flight. Thus, the revenue function is, R ( x ) = 100 × x = 100 x The profit is basically the amount that is obtained by subtracting the cost price from selling price

7th Edition

ISBN: 9781337291262

Author: Stefan Waner, Steven Costenoble

Publisher: Brooks Cole

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Chapter 1.2, Problem 26E

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To calculate: The hourly profit P that must be earned by operating a McDonnell Douglas DC 10−10 as a function of number of passengers x and the minimum number of passengers that must be carry to make a profit, where the operating cost of DC 10−10 is estimated to be $3885 per hour for up to 295 passengers. The fare of airline for each passenger is $100 per hour of flight.

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Chapter 1.2, Problem 25E

Chapter 1.2, Problem 27E

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