=+EX 21-21 Sales mix and break-even sales obj. 5

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a. 10,000 units Southwest Blue Airways provides air transportation services between Seattle and San Diego. A single Seattle to San Diego round-trip flight has the following operating statistics:

Fuel $7,000 Flight crew salaries 5,400 Airplane depreciation 2,600 Variable cost per passenger—business class 50 Variable cost per passenger—economy class 40 Round-trip ticket price—business class 550 Round-trip ticket price—economy class 290 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.