Southeastern Airlines's daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for

120

120 people. In the past, the airline has priced every seat at $

144

144 for the one-way flight. An average of

79

79 passengers are on each flight. The variable cost of a filled seat is $

22

22. Aysajan Eziz, the new operations manager, has decided to try a yield revenue approach, with seats priced at $

79

79 for early bookings and at $

189

189 for bookings within 1 week of the flight. He estimates that the airline will sell

64

64 seats at the lower price and

37

37 at the higher price. Variable cost will not change.

Part 2

Total $ contribution in the single price approach is $

enter your response here

(enter your response as a whole number).

Part 3

Total $ contribution in the two price points approach is $

enter your response here

(enter your response as a whole number).

Part 4

Which approach is preferable to Mr. Eziz?