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 $8,798 6,739 Flight crew salaries Airplane depreciation 3,183 Variable cost per passenger-business class 65 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 545 Round-trip ticket price-economy class 320 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 flight for the overall product, E. Assume that the overall product is 20% business class and 80% 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

Question
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
$8,798
6,739
Flight crew salaries
Airplane depreciation
3,183
Variable cost per passenger-business class
65
Variable cost per passenger-economy class
50
Round-trip ticket price-business class
545
Round-trip ticket price-economy class
320
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 flight for the overall product, E. Assume that the overall product is 20%
business class and 80% 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
Expand
Transcribed Image Text

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 $8,798 6,739 Flight crew salaries Airplane depreciation 3,183 Variable cost per passenger-business class 65 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 545 Round-trip ticket price-economy class 320 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 flight for the overall product, E. Assume that the overall product is 20% business class and 80% 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

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