Air Eagle is about to introduce a daily round-trip flight from New York to Los Angeles and is determining how to price its round-trip tickets. The market research group at Air Eagle 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: (Click the icon to view the pricing and ticket information.) i (Click the icon to view additional information.) Read the requirements. i Data Table Requirement 1. If you could charge different prices to business travelers and pleasure travelers, would you? Show your computations. Before determining if you would charge different prices to business travelers and pleasure travelers, calculate the total contribution margin at each price for each Number of Seats Expected to Be Sold Total contribution margin Price Charged Variable Cost per Ticket Business Pleasure Price charged Business Pleasure S 800 $ 75 160 80 800 1,900 195 140 20 1,900 Air Eagle would maximize contribution margin and operating income by charging business travelers a fare of and pleasure travelers a fare of Print Done , where business travelers are charged pleasure travelers. Requirement 2. Explain the key factor (or factors) for your answer in requirement 1. Business travelers are relatively price because they must get to their destination during the week (exclusive of weekends) and their fares are paid by their companies. Pleasure travelers are price because they have to pay for their own airfare. i X (Round the percentages to the nearest tenth percent, X.X%.) More Info An increase in fares from $800 to $1,900 will deter only % of the business passengers from flying with Air Eagle. In contrast, a similar fare increase will lead to a(n) % drop in pleasure travelers. The drop in demand for the pleasure Pleasure travelers start their travel during one week, spend at least 1 weekend at their destination, and return the following week or thereafter. Business travelers travelers offset by the total contribution margin. usually start and complete their travel within the same work week. They do not stay over weekends. Assume that round-trip fuel costs are fixed costs of $24,800 and that fixed costs allocated to the round-trip flight for airplane-lease costs, ground Choose from any list or enter any number in the input fields and then continue to the next question. services, and flight-crew salaries total $180,000