Airline Revenue An airline has two classes of service:

Chapter 12, Problem 31

(choose chapter or problem)

Airline Revenue An airline has two classes of service: first class and coach. Managements experience has been that each aircraft should have at least 8 but no more than 16 first-class seats and at least 80 but not more than 120 coach seats. (a) If management decides that the ratio of first class to coach seats should never exceed 1:12, with how many of each type of seat should an aircraft be configured to maximize revenue? (b) If management decides that the ratio of first class to coach seats should never exceed 1:8, with how many of each type of seat should an aircraft be configured to maximize revenue? (c) If you were management, what would you do? [Hint: Assume that the airline charges $C for a coach seat and $F for a first-class seat; C 7 0, F 7 C.]