Break-even sales and sales mix for a service company OBJ. 5 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 $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 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 product, E. Assume that the overall product mix is 10% business class and 90%

economy class tickets.

b. How many business class and economy class seats would be sold at the break-even point?