Air Americo is an American passenger air carrier headquartered in Frostbite Falls Minnesota. They operate scheduled flights throughout the United States and Canada. Air Americo is about to introduce a daily round-trip flight from Bangor, Maine to Walla Walla, Washington and is determining how it should price its round-trip tickets. The market research group at Air Americo segments the market into business and pleasure travelers. It provides the following information on the effects of two different prices on the number of seats expected to be sold and the variable cost per ticket, including the commission paid to travel agents:

Number of seats expected to be sold Ticket Price Variable Cost/Ticket Business Pleasure $500 $80 200 100 $2,000 $180 190 20

Pleasure travelers start their travel during one week, spend at least one weekend at their destination, and return the following week or thereafter. Business travelers usually travel within the same work week. The do not stay over weekends. The aircraft to be used has a maximum of 300 seats. The following costs are incurred on each round-trip flight:- Aircraft lease $90,000 Flight Crew salaries 50,000 Fuel 44,000 Airport ground services 28,000

1. How would I do a introduction and explanation of the situation being analyzed.
2. What would I put as discussion of results
3. What would be the recommendation.
4. And how do I discuss how Air Americo would implement the recommended pricing structure. What strategy could the airline employ so business and pleasure travelers each pay the recommended ticket price?

I need a computation attachment that shows net income calculations (Income Statements) for each of three scenarios: All travelers pay a $500 fare.

All travelers pay a $2,000 fare.

Pleasure travelers pay a $500 fare and business travelers pay a $2,000 fare.

I really have no clue how to do this and answer the questions.