Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Southeastern Airlines's daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for 120 people. In the past, the airline has priced

image text in transcribed

Southeastern Airlines's daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for 120 people. In the past, the airline has priced every seat at $136 for the one-way flight. An average of 81 passengers are on each flight. The variable cost of a filled seat is $23. Aysajan Eziz, the new operations manager, has decided to try a yield revenue approach, with seats priced at $82 for early bookings and at $195 or bookings within 1 week of the flight. He estimates that the airline will sell 66 seats at the lower price and 33 at the higher price. Variable cost will not change. 1. Total S contribution in the single price approach is ? (enter your response as a whole number). 2. Total contribution in the two price points approach is ? (enter your response as a whole number). 3.Which approach is preferable to Mr. Eziz? A.Proposed model-two price points OR B. Current Model - Single price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Perkins

4th Edition

111925700X, 978-1119257004

More Books

Students also viewed these Accounting questions

Question

6. How do organic and grieving depression differ in aphasia?

Answered: 1 week ago

Question

10:16 AM Sun Jan 29 Answered: 1 week ago

Answered: 1 week ago

Question

Classify delivery styles by type.

Answered: 1 week ago