Widget Airlines

Imagine Widgets Airlines, Inc. operates 18-seat mercenary fledges between New York City and Washington, DC. After 10 seats fuck off been sold on each aircraft, the compevery has reached the break-even point. Should Widgets consider go a subtractioned fare for seats 11 through 18? Yes. Widgets Airlines, Inc. should offer a discount on the remaining seats. What are the advantages and disadvantages of not offering a discount on seats 11 through 18? The advantages of selling at a discounted price are that they would sell their seats immediate depending on the price they are selling at.This could be a safe by gaining more customers who travel for business on a hebdomadally basis especially on Thursdays. The disadvantage of not offering discounts is that the flight volition have empty seats because the price is too high. veritable(a) though the company will lose profit initially, the airline will develope a goodness temper for low fares and fair treatment as a result, they will continue to get business. What are the advantages and disadvantages of offering a discount on seats 11 through 18?The disadvantages of offering a discount hold unhappy customers (who feel that the discount wasnt good enough, aka insignificant). An some other disadvantage is that the company will lose revenue . The advantages include happy customers (who are glad to have been able to save gold and to not have to mess with rebates), selling the seats more quickly, boosting the companys reputation with the promotion, and possibly securing the loyalty of frequent fliers. How would you define how much of a discount, if any, could be offered? What effect would the discount have on the pecuniary statements of Widgets Airlines, Inc.?We will decide how much of a discount would be offered by comparing the other competitors. For example if the other competitors sell more tickets base on a %20 discounted rates for specific days, the company will adjust its discount rates at %25 on those da ys. Widgets would not lose any revenue because it is all profit at this point. This would only bring in more customers especially the ones who fly on a weekly basis. The financial statement will stay the same because all companies offer discounts at some point and this would show on the income statement.