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VI. (15 pts.) A business executive must make the four round trips listed in the

ID: 328860 • Letter: V

Question

VI. (15 pts.) A business executive must make the four round trips listed in the Table below between the head office in Manila and a branch office in Cebu. Departure date from Manila Return date to Manila Tuesday, March 6 Tuesday, March 13 Tuesday, March 20 Tuesday, March 27 Friday, March9 Thursday, March 15 Friday, March 23 Friday, March 30 The price of a round-trip ticket from Manila is PhP 8,000. A discount of 10% is granted if the dates of a ticket span a weekend (Saturday and Sunday). If the stay in Cebu lasts more than 14 days, the discount is increased to 20%. A one-way ticket between Manila and Cebu (either direction) costs PhP 5,000. How should the executive purchase the tickets and how much is the expected total cost?

Explanation / Answer

stay lasting more than 14 days has discount of 20%.

The excutive should get tickets as follows:

1. round trip starting tuesday March 6 to return date Friday March 30. Hence more than 14 days,

round trip cost = 8000, discount = 20%*8000 = 1600, total cost = 8000 - 1600 = 6400

2. round trip starting friday march 9 from cebu to tuesday march 27 from manila, hence more than 14 days,

round trip cost = 8000, discount = 20%*8000 = 1600, total cost = 8000 - 1600 = 6400

3. round trip starting tuesday march 13 from manila to friday march 23 from cebu, it spans a weekend, but only 10 days hence 10% discount

round trip cost = 8000, discount = 10%*8000 = 800, total cost = 8000 - 800 = 7200

4. round trip starting thursday march 15 from cebu to tuesday march 20 from manila, it spans a weekend, but only 5 days hence 10% discount

round trip cost = 8000, discount = 10%*8000 = 800, total cost = 8000 - 800 = 7200

Total cost = 1 + 2 +3 +4 = 6400 + 6400 + 7200 + 7200 = 27200