Question

An airline charges the following baggage fees: $25 for the first bag and $35 for the second. Suppose 51% of passengers have no checked luggage, 32% have one piece of checked luggage and 17% have two pieces. We suppose a negligible portion of people check more than two bags. The average baggage-related revenue per passenger is: _____.

Answer 1

Answer:

The average baggage-related revenue per passenger is $18.20

Step-by-step explanation:

$25 for the first bag

$35 for the second bag

Total passenger = 100

51 passenger have no checked baggage

32 passenger have one checked baggage. Therefore the airlines charges for the 32 passenger will be: $25 * 32 = 800$.

17 passenger have two checked baggage. Therefore the airline charges for the 17 passenger will be: $(25 *17) + (35*17) = 425+595=1020$

Average baggage related revenue per passenger is: Total Revenue / passenger

Total Revenue = 1020 + 800 = $1820

Average = 1820/100 = $18.20