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 $12,098 Flight crew salaries 9,266 Airplane depreciation 4,376 Variable cost per passenger—business class 45 Variable cost per passenger—economy class 35 Round-trip ticket price—business class 515 Round-trip ticket price—economy class 275 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 fill in the blank 1 seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats at break-even fill in the blank 2 seats Economy class seats at break-even fill in the blank 3 seats
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 $12,098 Flight crew salaries 9,266 Airplane depreciation 4,376 Variable cost per passenger—business class 45 Variable cost per passenger—economy class 35 Round-trip ticket price—business class 515 Round-trip ticket price—economy class 275 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 fill in the blank 1 seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats at break-even fill in the blank 2 seats Economy class seats at break-even fill in the blank 3 seats
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter25: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 1MAD: Analyze Pacific Airways Pacific Airways provides air travel services between Los Angeles and...
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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:
| Fuel | $12,098 |
| Flight crew salaries | 9,266 |
| Airplane |
4,376 |
| Variable cost per passenger—business class | 45 |
| Variable cost per passenger—economy class | 35 |
| Round-trip ticket price—business class | 515 |
| Round-trip ticket price—economy class | 275 |
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 | fill in the blank 1 seats |
b. How many business class and economy class seats would be sold at the break-even point?
| Business class seats at break-even | fill in the blank 2 seats |
| Economy class seats at break-even | fill in the blank 3 seats |
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