1.Please Complete Solution With Details 2.Final Answer Clearly Mentioned 3.Do not give solution in image format Break-even sales and sales mix for a service companyZero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawail. A single Los Angeles to Kona round-trip flight has thefollowing operating statistics:FuelFlight crew salariesAirplane depreciationVariable cost per passenger-business classVariable cost per passenger-economy classRound-trip ticket price-business classRound-trip ticket price-economy class$15,61311,9595,6486050570300It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight.a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 20% businessclass and 80% economy class tickets.Total number of seats at bdsak-evenseatsb. How many business class and economy class seats would be sold at the break-even point?Business class seats at break-evenseatsEconomy class seats at break-evenseats

Note : In this numerical has covered the concept of Break even for multiple product . It is also…

Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaill. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $15,613 11,959 5,648 60 50 570 300 Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class Round-trip ticket price-economy class 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. a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 20% business class and 80% economy class tickets. Total number of seats at bdsak-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

Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaill. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $15,613 11,959 5,648 60 50 570 300 Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class Round-trip ticket price-economy class 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. a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 20% business class and 80% economy class tickets. Total number of seats at bdsak-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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 22E

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Break-even sales and sales mix for a service companyZero Turbulence Airline provides air transportation services betweenLos Angeles, California; and Kona, Hawaii. A single Los Angeles to Konaround-trip flight has the following operating statistics: Fuel $7,000 Flight crew salaries 3,200 Airplane depreciation 3,480 Variable cost per passenger-business class 140 Variable cost per passenger-economy class 120 Round trip ticket price-business class 800 Round trip ticket price-economy class 300 It is assumed that the fuel, crew salaries, and airplane depreciation arefixed, regardless of the number of seats sold for the round-trip flight. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overallproduct mix is 10% business class and 90% economy class tickets.b. How many business class and economy class seats would besold at the break-even point?
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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: Line Item Description Amount Fuel $14,758 Flight crew salaries 11,304 Airplane depreciation 5,338 Variable cost per passenger—business class 50 Variable cost per passenger—economy class 40 Round-trip ticket price—business class 540 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. a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 20% business class and 80% economy class tickets.Total number of seats at break-even fill in the blank 1 of 1 seats b. How many business class and economy class seats would be sold at the break-even…
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CVP analysis, changing revenues and costs.</b> Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Hamilton Air. Sunset’s fixed costs are $23,500 per month. Hamilton Air charges passengers $1,500 per round-trip ticket. Calculate the number of tickets Sunset must sell each month to (a) break even and (b) make a target operating income of $10,000 per month in each of the following independent cases. Required: Sunset’s variable costs are $43 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. Sunset’s variable costs are $40 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. Sunset’s variable costs are $40 per ticket. Hamilton Air pays $60 fixed commission per ticket to Sunset. Comment on the results. Sunset’s variable costs are $40 per ticket. It receives $60 commission per ticket from Hamilton Air. It charges its customers a delivery fee of $5 per ticket. Comment on the results.
CVP analysis, changing revenues and costs. Sunset Travel Agency specializes in flights betweenToronto and Jamaica. It books passengers on Hamilton Air. Sunset’s fixed costs are $23,500 per month.Hamilton Air charges passengers $1,500 per round-trip ticket.Calculate the number of tickets Sunset must sell each month to (a) break even and (b) make a target operatingincome of $10,000 per month in each of the following independent cases.1. Sunset’s variable costs are $43 per ticket. Hamilton Air pays Sunset 6% commission on ticket price.2. Sunset’s variable costs are $40 per ticket. Hamilton Air pays Sunset 6% commission on ticket price.3. Sunset’s variable costs are $40 per ticket. Hamilton Air pays $60 fixed commission per ticket to Sunset.Comment on the results.4. Sunset’s variable costs are $40 per ticket. It receives $60 commission per ticket from Hamilton Air. Itcharges its customers a delivery fee of $5 per ticket. Comment on the results.
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