Break-Even Sales and Sales Mix for a Service CompanyZero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:Fuel———————————————————————-$6,392Flight crew salaries—————————————————4,896Airplane depreciation————————————————-2,312Variable cost per passenger—business class——————–45Variable cost per passenger—economy class——————-35Round-trip ticket price—business class————————-515Round-trip ticket price—economy class————————-285It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number.a.Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 10% business class and 90% economy class seats.Total number of seats at break-even seats _________________b.How many business class and economy class seats would be sold at the break-even point?Business class seats at break-even seats ____________________Economy class seats at break-even seats _____________________
Recent Comments