As a brand new pricing manager you are tasked with pricing a 10 hrs flight. The total operating cost for the aircraft, fuel and crew is $100,000. There’s 100 seats on the aircraft, 10 in first/business class and 90 in economy. 4 seats behind first/business class and 4 seats in the exit rows have extra leg room but does not recline. The competitor airline is profiting about $50,000 on similar flights.
* How are you going to price the seats?
* What will the price be for the seats on the aircraft?
* Be sure to explain why you set the prices the way you did.
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