Finances

Seven spring break destinations are offered for spring break tourists from Partee University. For each destination, the table lists the plane ticket price, the discounted plane ticket price (if any), the spring break operator, the rate for a waterfront beach house in the block area, and the lowest rate for a waterfront beach house. Spring break traveler groups will require 4 nights of lodging and all beach house rates are per night and per group. All plane ticket prices are also per group of up to six passengers. Each group has no more than six people as there are 6 beds in each beach house. The lowest rate for an available beach house outside of the waterfront is \$70.

Article

The waterfront beach houses are organized in 3 rows. The spring break company has set aside a block of beach houses (the first row along the waterfront) for its clients; the availability is at a higher-than-normal rate for the waterfront beach houses.

While most spring breakers prefer to stay in beach houses in the waterfront area, they often follow an alternate strategy to avoid the extra cost of reserving a house. Some attendees reserve houses outside the waterfront area - ROWFA strategy. Others reserve beach houses outside the block - ROB strategy - and get a row 2 or row 3 waterfront beach house instead.

Spring break operators have succeeded in curbing the frequency of these alternatives by increasing the plane ticket by a fixed amount and then offering an equivalent planet ticket price discount to spring breakers who book rooms in the front waterfront block. A study has shown that if this plane ticket discount is equal to at least half the potential savings of a spring breaker's particular cost-saving strategy, the spring breaker is much more likely to reserve a beach house within the first row of the waterfront block.

Jill and her friends are planning a 5-day/4-night spring break trip to Cancun. Their group has 10 people and they want to stay in the first block of the waterfront area. What is the total cost for Jill and her friends traveling from Partee University?

\$500

\$950

\$1000

\$1900

\$5000