Question: Total $ contribution in the single price approach is _______________(enter your response as a whole number). Total $ contribution in the two price points approach

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).
Which approach is preferable to Mr. Eziz?
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 $141 for the one-way flight. An average of 79 passengers are on each flight. The variable cost of a filled seat is $26. Aysajan Eziz, the new operations manager, has decided to try a yield revenue approach, with seats priced at $83 for early bookings and at $191 for bookings within 1 week of the flight. He estimates that the airline will sell 64 seats at the lower price and 37 at the higher price. Variable cost will not changeStep by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
