Air Americo is an American passenger air carrier headquartered in Frostbite Falls Minnesota. They operate scheduled flights throughout the United States and Canada. They are about to introduce a daily round-trip flight from Bangor, Maine to Walla Walla, Washington and have asked you to determine how it should price its round-trip tickets. The Market Research department of Air Americo has provided the following information about the new round-trip flight:- . The market is segmented into two classes of passengers, business and pleasure. The number of seats sold to each passenger class at two different price points is show in the table below. It also shows the variable cost per ticket (including commission paid to travel agents) incurred by Air Americo at each price point. Ticket Price $1,000 $3,300 Number of tickets sold per trip Pleasure 100 20 Business 200 190 Aircraft lease Flight Crew salaries Fuel Airport ground services Variable Cost/Ticket The aircraft to be used has a maximum of 300 seats. The following costs are incurred on each round-trip flight:- $90,000 75,000 130,000 42,000 $230 $600 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. Analyze the situation and prepare a paper. Your paper should include the following elements:- 1. Introduction and explanation of the situation being analyzed. 2. Discussion of your results from a calculation attachment. 3. Recommendation to Air Amerco. 4. Discuss how Air Americo would implement the recommended pricing structure. What strategies could the airline employ so business and pleasure travelers each pay the recommended ticket price? 5. For purposes of this paper, "A Business Can Afford It" will not be accepted as a valid strategy. Any paper suggesting this as a strategy will receive a ZERO. Your computation attachment should show net income calculations (Income Statements) for three separate scenarios:

Air Americo is an American passenger air carrier headquartered in Frostbite Falls Minnesota. They operate scheduled flights throughout the United States and Canafla. They are about to introduce a daily round-trip flight from Bangor, Maine to Walla Walla, Wlashington and have asked you to determine how it should price its round-trip tickets. The Market Research department of Air Americo has provided the following information about the new round-trip flight:- - The market is segmented into two classes of passengers, business and pleasure. - The number of seats sold to each passenger class at two different price points is show in the table below. It also shows the variable cost per ticket (including commission paid to travel agents) incurred by Air Americo at each price point. The aircraft to be used has a maximum of 300 seats. The following costs are incurred on each round-trio fliaht:- 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. Analyze the situation and prepare a paper. Your paper should include the following elements:- 1. Introduction and explanation of the situation being analyzed. 2. Discussion of your results from a calculation attachment. 3. Recommendation to Air Amerco. 4. Discuss how Air Americo would implement the recommended pricing structure. What strategies could the airline employ so business and pleasure travelers each pay the recommended ticket price? 5. For purposes of this paper, "A Business Can Afford It" will not be accepted as a valid strategy. Any paper suggesting this as a strategy will receive a ZERO. Your computation attachment should show net income calculations (Income Statements) for three separate scenarios: Air Americo is an American passenger air carrier headquartered in Frostbite Falls Minnesota. They operate scheduled flights throughout the United States and Canada. They are about to introduce a daily round-trip flight from Bangor, Maine to Walla Walla, Washington and have asked you to determine how it should price its round-trip tickets. The Market Research department of Air Americo has provided the following information about the new round-trip flight:- - The market is segmented into two classes of passengers, business and pleasure. - The number of seats sold to each passenger class at two different price points is show in the table below. It also shows the variable cost per ticket (including commission paid to travel agents) incurred by Air Americo at each price point. The aircraft to be used has a maximum of 300 seats. The following costs are incurred on each round-trio fliaht:- 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. Analyze the situation and prepare a paper. Your paper should include the following elements:- 1. Introduction and explanation of the situation being analyzed. 2. Discussion of your results from a calculation attachment. 3. Recommendation to Air Amerco. 4. Discuss how Air Americo would implement the recommended pricing structure. What strategies could the airline employ so business and pleasure travelers each pay the recommended ticket price? 5. For purposes of this paper, "A Business Can Afford It" will not be accepted as a valid strategy. Any paper suggesting this as a strategy will receive a ZERO. Your computation attachment should show net income calculations (Income Statements) for three separate scenarios