This is a simulations problem for Excel, If you cant do it on excel I\'ll accept

Question

This is a simulations problem for Excel, If you cant do it on excel I'll accept just a regular written answer or any input is greatly appreciated. Thank you

A ticket from Miami to Orlando sells for $150. The plain can hold 100 people. It costs $8,000 to fly an empty plain. The airline incurs variable costs of $30 per person on the plane. If the flight is overbooked, anyone who cannot get a seat receives $300 in compensation. On the average, 95% of all people who have a reservation show up for the flight. To maximize the expected profit, how many reservations for the flight should be taken?

Explanation / Answer

Fixed Cost-8000
No of seat-100
variable costs-30
Total Cost for full plane=8000+(30*100)=11000

Ticket/seat=150
Maximum SP=150*100=15000

But Occupany=95%
So no of booking so that seat is full=x(let)
so 95%of x=100
so, x=105.26

So no of booking to maximise profit=105
so profit=(105*150)-11000=4750

ALL value are in $.

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