Recently you have noticed that the passenger services have eroded your profits to a significant extent. When your top team met, they observed that the competition has (in some cases) started charging for items contributing to plane weight (i. e., luggage and pets), food that may be offered while in the air, and even seat selection. There was some discussion as to whether charging service fees would be in line with strategic goals, and the net effect fees might have on revenue. Currently, about 35% of your passengers check their suitcases, golf clubs, and other items. If a fee is charged, this number might go down somewhat. Strollers and assistive devices are always free. If you are offering food and beverages on flights, you may want to offset the cost by charging for the service. It is not known how many passengers would be willing to pay for the food. Most of your ticketed passengers currently select seating in advance. Charging a fee would help cover the cost of providing this service. Your team may select zero or more of the which of the following service fees: a. $25 per passenger for checked baggage.
b. $3 for food and drinks.
c. $10 fee for advanced seat selection.