1 answer

Assume Cape Cod Railway is considering hiring a reservations agency to handle passenger reservations. The agency...

Question:

Assume Cape Cod Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge

Assume Cape Cod Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge a flat fee of $10,000 per month, plus $2 per passenger reservation. What is the total reservation cost if 200,000 passengers take the trip next month? O A. $10,000 B. $400,000 C. $2.05 D. $410,000

Answers

Correct answer--------------(D) $410,000

Working

Fixed charge $    10,000
Variable cost (200000 x $2) $ 400,000
Total expected reservation cost   $ 410,000
.

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