Answer Happy

Break-Even Sales and Sales Mix for a Service Company Zero 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 $16,544 Flight crew salaries 12,672 Airplane depreciation 5,984 Variable cost per passenger-business class SO Variable cost per passenger-economy class 40 Round-trip ticket price-business class 570 Round-trip ticket price-economy class 310 It 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 fight for the overall product, E. Assume that the overall product mix is 20% business class and 80% economy class tickets. Total number of seats at break-even 120 X seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats at break-even 12 X seats Economy class seats at break-even 108 x seats Feeder