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I just need to understand Question 1 and 2. I just wanted tomake sure I did the revenue management right.

Freedom Airlines recently started operations in the Southwest.The airline owns two airplanes, one based in Phoenix and the otherin Denver. Each airplane has a coach section with 140 seatsavailable. Each afternoon, the Phoenix based airplane flies to SanFrancisco with stopovers in Las Vegas and in San Diego. TheDenver-based airplane also flies to San Francisco with stopovers inLas Vegas and in San Diego. Each airplane returns to its home-basewith no stopovers.

Freedom Airlines uses two coach-fare classes: A discount fare(A) and a full fare (B). Discount fares are available with a 21-dayadvance purchase. Full fares applied at any time, up to the time ofthe flight.

Below is the daily fare and demand data for 16 selected FreedomAirline itineraries. Itineraries 1 through 6 apply to the Phoenixbased airplane (leg 1); itineraries 7 through 12 apply to theDenver based airplane (leg 2); itineraries 13 and 14 apply to thePhoenix based airplane (leg 3); itineraries 15 and 16 apply to theDenver based airplane (leg 4):

1	Phoenix	Las Vegas	A	$ 180.00	50
2	Phoenix	San Diego	A	$ 270.00	40
3	Phoenix	San Francisco	A	$ 230.00	35
4	Phoenix	Las Vegas	B	$ 380.00	15
5	Phoenix	San Diego	B	$ 460.00	10
6	Phoenix	San Francisco	B	$ 560.00	15
7	Denver	Las Vegas	A	$ 200.00	50
8	Denver	San Diego	A	$ 250.00	45
9	Denver	San Francisco	A	$ 350.00	40
10	Denver	Las Vegas	B	$ 385.00	15
11	Denver	San Diego	B	$ 445.00	10
12	Denver	San Francisco	B	$ 580.00	10
13	San Francisco	Phoenix	A	$ 250.00	70
14	San Francisco	Phoenix	B	$ 600.00	10
15	San Francisco	Denver	A	$ 325.00	50
16	San Francisco	Denver	B	$ 585.00	10

1. Develop a revenue management (maximizing) model based on theinformation given in the scenario.
2. How many seats should be allocated toeach of the 16 itineraries to maximizerevenue?