Contribution in the single price approach

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Reference no: EM132094268

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 ?$137 for the? one-way flight. An average of 78 passengers are on each flight. The variable cost of a filled seat is ?$26. Josh Ezi, the new operations? manager, has decided to try a yield revenue? approach, with seats priced at ?$81 for early bookings and at ?$195 for bookings within 1 week of the flight. He estimates that the airline will sell 67 seats at the lower price and 33 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).

Reference no: EM132094268

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