Airline pricing, considerations other than cost in pricing. Air Americo is about to introduce a daily round-trip flight from New York to Los Angeles 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 Price Charged Variable Cost per Ticket Business Pleasure $ 800 $ 75 300 150 2,100 185 285 30