Reference no: EM133631458

American Airline provides three ticket classes: First, Business and Economy class. There are two types of customers with different profit contributions. One is the AAdvantage Club Member, the other is the Non-AA member. The profit per customer for each type of customer and ticket class is as follows: Ticket Class Economy Business First Customer Type Non-AA member $30 $35 - AA member $20 $30 $40 American Airline does not offer First class tickets to Non-AA members. AA's management makes a forecast of the demand by ticket class for each flight in the future. The demand forecast for a particular flight is 130 customers in the Economy class, 60 in the Business class, and 50 in the First class. (These demands are the maximum numbers to accept for each ticket class. The actual customers may be less for each class.) American Airline has a booking limit for each customer type: 100 seats for Non-AA members and 120 seats for AA members. (The booking limit allows AA to accept reservation up to certain numbers for each customer type.) Use a linear programming model developed to maximize profit for AA and determine how many reservations to accept for each ticket class under each.