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 ?$142 for the? one-way flight. An average of 81 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 ?$79 for early bookings and at ?$185 for bookings within 1 week of the flight. He estimates that the airline will sell 64 seats at the lower price and 34 at the higher price. Variable cost will not change.
a. total $ contribution in single price approach
b. total $ contribution in the two price point approach