Assume Intervale Railway is considering hiring a reservation

Assume Intervale Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge a flat fee of $ 5,000 per? month, plus $3 per passenger reservation. What is the total reservation cost if 150,000 passengers take the trip next? month?

a. $455,000

b. $450,000

c. $5,000

d. $3.03

Solution

Calculate total reservation cost :

Total reservation cost = (150000*3+5000) = $455000

So answer is a) $455000