Your paper should be approximately two pages in length and an attachment showing your calculations. For paper requirement #4 (How will Air Americo implement price discrimination) - "Because businesses can afford it" is not a valid strategy for implementation. Any paper suggesting this as a strategy will receive a Zero.

****Any help getting me started on this paper would help a bundle. I'm so overwhelmed right now with all my classes, I'm not sure where to start! :( Thanks!

Air Americo is about to introduce a daily round-trip flight from New York to Los Angeles and is determining how it should price its round-trip tickets. The market research group at Air Americo segments the market into business and pleasure travelers. It provides the following information on the effects of two different prices on the number of seats expected to be sold and the variable cost per ticket, including the commission paid to travel agents: Seats Expected to Be Sol e Charged $500 $2,000 Variable Cost per Ticket $80 180 200 190 100 20 Pleasure travelers start their travel during one week, spend at least one weekend at their destination, and return the following week or thereafter. Business travelers usually start their travel within the same work week. They do not stay over weekends. Assume that round-trip fuel costs are fixed costs of $24,000 and that fixed costs allocated to the round- trip flight for airplane-lease costs, ground services, and flight-crew salaries total $188,000 Your paper should include the following: 1. 2. 3. 4. Introduction and explanation of the situation being analyzed Discussion of your results from calculation attachment. Recommendation Discussion as to how Air Americo might implement price discrimination. That is, what plan could the airline formulate so that business travelers and pleasure travelers each pay the price desired by the airline. "Businesses Can Afford It" is not a valid plan to implement price discriminatic Any paper suggesting this as a strategy will receive a Zero Your attachment should show net income calculations (Income Statements) for each of three scenarios: 1. All travelers pay a $500 fare 2. All travelers pay a $2000 fare 3. Business travelers pay a $2000 fare and pleasure travelers pay a $500 fare Your paper should be a minimum of two typed pages using APA formatting and a separate attachment page