Yield analysis forces managers to recognize the opportunity cost of selling capacity for a given date to a customer from one market segment when another might subsequently yield a higher rate.

Question

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Yield analysis takes into account the potential revenue that could be generated by selling capacity to different market segments on different dates, and helps managers make informed decisions about pricing and allocation of resources. It encourages managers to consider the opportunity cost of selling to one customer or market segment over another, and to continually adjust their pricing strategies in response to changing market conditions.

Yield Analysis Forces Managers to Recognize the Opportunity Cost of Selling