$$

$$

$1$

$3$

$.$

$2$

$5$

$$Southeastern Airlines

$$

s daily flight from Atlanta to Charlotte uses a Boeing

$7$

$3$

$7$

$,$

$$with all

$-$

coach seating for

$1$

$2$

$0$

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

$1$

$4$

$0$

$$for the one

$-$

way flight. An average of

$8$

$0$

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

$2$

$5$

$.$

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

$8$

$0$

$$for early bookings and at $

$1$

$9$

$0$

$$for bookings within

$1$

$$week of the flight. He estimates that the airline will sell

$6$

$5$

$$seats at the lower price and

$3$

$5$

$$at the higher price. Variable cost will not change. Which approach is preferable to Mr

$.$

$$Eziz$?$

$1$

$3$

$.$

$2$

$6$

$$The exclusive Swink Golf Driving Range has had a standard price of $

$1$

$5$

$$per hour. The facility has

$3$

$6$

$$golfing stations, with average usage of

$5$

$0$

$\%$

$,$

$1$

$0$

$$hours a day,

$7$

$$days a week. Morgan Swink, the owner, would like to enhance revenue. He proposes new pricing at $

$1$

$0$

$$per hour on weekdays and $

$2$

$0$

$$per hour on weekends. He estimates that weekday usage will increase to

$6$

$0$

$\%$

$$and weekend usage will remain at

$5$

$0$

$\%$

$,$

$$even with the price increase. Variable cost is a consistent $

$3$

$$per hour. Which strategy is better?