Paxi provides a shuttle service between the train station and the airport and charges a flat fee of $52 per trip Variable costs are $22 per trip and fixed costs are $8,000 Pat, the owner, believes that if the price were decreased by $10 per trip that sales would increase significantly If current profit is $21,081, how many additional trips would Paxi need to make to maintain the same level of profitability?

Answer rating: 100% (QA)

Computation of increased number of trips to maintain the same level of profitability Pa... View the full answer