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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.
BreakEven 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 roundtrip flight has the following operating statistics:
Fuel $
Flight crew salaries
Airplane depreciation
Variable cost per passengerbusiness class
Variable cost per passengereconomy class
Roundtrip ticket pricebusiness class
Roundtrip ticket priceeconomy class
It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the roundtrip flight.
a Compute the breakeven number of seats sold on a single roundtrip flight for the overall enterprise product, E Assume that the overall product mix is business class and economy class tickets.
Total number of seats at breakeven fill in the blank seats
b How many business class and economy class seats would be sold at the breakeven point?
Business class seats at breakeven fill in the blank seats
Economy class seats at breakeven fill in the blank seats
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