10. Break-Even Sales and Sales Mix for a Service Company Zero Turbulence...
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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 $12,977 Flight crew salaries 9,940 Airplane depreciation 4,693 60 Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class 50 590 Round-trip ticket price-economy class 270 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 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
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