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Go ahead and do the trip anyway and hope more people buy tickets, or call the whole thing off. Calling the whole thing off will mean they spent $295,000 on nothing, whereas going ahead with this trip will incur a loss of only $35,000. Plus there is the additional chance that more will buy and lower the loss. Also, if the trip is enjoyed by the passengers, word of mouth will encourage future ticket purchases. I would say do the trip anyway and minimize losses. It wont cost anymore money to give it a shot.
3. The advertising agency has proposed two alternative campaigns to help fill the boat. One will cost $6000 and the other would cost $15,000...
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