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To achieve this, AeroFlights is conducting a comprehensive analysis of its new offerings. The company has gathered data on the projected annual demand and associated
To achieve this, AeroFlights is conducting a comprehensive analysis of its new offerings. The company has gathered data on the projected annual demand and associated costs for each ticket category:
AeroFlights' passenger aircraft now offers three ticket category:
SkyNavigator: A premium option with extensive amenities including dining, accommodation planning, lodge and special services.
JetStream: A midrange option targeted at frequent flyers and offering additional benefits beyond basic travel needs.
CloudSync: A budgetfriendly option designed for occasional travellers, focusing on basic travel needs.
Each category caters to a distinct segment of AeroFlights' clientele, with varied features, capabilities, and pricing.
AeroFlights operates on a luxury island where an average of customers fly daily. There are three airline companies serving this island, including AeroFlights. According to an agreement with the other two competitors, the first customers buying anycategory ticket from any of these three companies each day are directed to AeroFlights, and the remaining two companies carry the remaining passengers in the rest of the day. In return to this favor, AeroFlights pays the other two companies $ per day. The daily average distribution of customers across the three ticket categories is detailed in the following table:
tableDaily Average Demand,Carrying cost per customer,Ticket priceSkyNavigator$$
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