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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
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 $138 for the one-way flight An average of 81 passengers are on each flight. The variable cost of a filled seat is $25. Aysajan Eziz, the new operations manager, has decided to try a yield revenue approach, with seats priced at $81 for early bookings and at $185 for bookings within 1 week of the flight. He estimates that the airline will sell 66 seats at the lower price and 34 at the higher price. Variable cost will not change. Total $ contribution in the single price approach is $ (enter your response as a whole number). Total $ contribution in the single price approach Is 5 (enter your response as a whole number). Total $ contribution in the two price points approach is $(enter your response as a whole number). Which approach is preferable to Mr. Eziz? O A. Current model - single price O B. Proposed model - two price points
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