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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
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.) over weekends. Assume that round-trip fuel costs are fixed costs of $24,400 and that fixed costs allocated to the round-trip flight for airplane-lease costs, ground services, and flight-crew salaries total $187,000. Read the requirements. 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 type of traveler. Data table Requirements 1. If you could charge different prices to business travelers and pleasure travelers, would you? Show your computations. 2. Explain the key factor (or factors) for your answer in requirement 1. 3. How might Global Air implement price discrimination? That is, what plan could the airline formulate so that business travelers and pleasure travelers each pay the price the airline desires
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