Question
Total $ contribution in the two price points approach is $? Southeastern Airlines's daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach
Total $ contribution in the two price points approach is $?
Southeastern Airlines's daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for people. In the past, the airline has priced every seat at $ for the one-way flight. An average of passengers are on each flight. The variable cost of a filled seat is $. Aysajan Eziz, the new operations manager, has decided to try a yield revenue approach, with seats priced at $ for early bookings and at $ for bookings within 1 week of the flight. He estimates that the airline will sell seats at the lower price and at the higher price. Variable cost will not change.
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 $140 for the one-way flight. An average of 80 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 $80 for early bookings and at $190 for bookings within 1 week of the flight. He estimates that the airline will sell 65 seats at the lower price and 35 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 two price points approach is \$ (enter your response as a whole number)Step by Step Solution
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