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If northeastern operates in the phoenix - las vegas route, its aircraft for that route will be idle between midnight and 6 am . The
If northeastern operates in the phoenixlas vegas route, its aircraft for that route will be idle between midnight and am The airline is considering offering a redeye special that would leave phoenix daily at midnight and return at am The marketing division estimates that if the fare were no more than $ at least new passengers would be attracted to each redeye flight. Operating costs would be at the same rate for those flights, but advertising costs of the $ per week would be required to promote the service. No food or beverage costs would be borne by the company. Assume the marketing division's estimates are correct. What is the minimum fare that would be required to break even on the redeye?
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