Pricing analysis
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REQUIREMENTS
1 Excel Spreadsheet - Completed Customer Demand Data spreadsheet
1 Memo Report - Analysis of Current and Proposed Pricing Strategy for Profitability
? Include an assessment of whether the current fare maximizes profits. If not, identify the fare that should be charged. Give evidence that it is the best by showing that profits are highest if this fare is charged.
? Complete the Customer Demand Data spreadsheet for Clear Blue Sky by calculating all appropriate revenues, costs, and profits.
? Discuss whether fuel costs should be used as a basis for pricing.
? Comment on the suggestion that the company could use price-discrimination strategies to improve profitability.
? Discuss the requirements for effective price discrimination, and describe how Clear Blue Sky satisfies these requirements.
? Identify and describe each group of travelers according to their price sensitivity. Analyze the price elasticity of demand for each group.
? Recommend a pricing plan that effectively separates each group of consumers. Providing actual prices is not necessary, but your plan should clearly indicate the level of pricing for each group.
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Solution Summary
Pricing analysis is achieved.
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