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United Airlines reduced it one-way ticket from Fort Wayne to Chicago from $125 to $35. To receive this special $35 price, the customer must buy a round trip ticket. Unitied has a nonrefundable 20% 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 350 to 700. United expects revenue for the year to be 54.0% higher than the previous year, United's sales for this leg were $484,000. To receive the secial rate, Janice Miller bought two round trip tickets. On other airlines, Janice has paid $105 round trip (with no cancellation penalty) Calculate the percent discount United is offering. Calculate the percent passenger travel will increase. Calculate the sales for new year.
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