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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.

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:
Line Item Description Amount
Fuel $8,949
Flight crew salaries 6,854
Airplane depreciation 3,237
Variable cost per passengerbusiness class 40
Variable cost per passengereconomy class 30
Round-trip ticket pricebusiness class 510
Round-trip ticket priceeconomy class 280
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 company product, M. Assume that the overall product mix is 10% business class and 90% economy class tickets.
Total number of seats at break-even fill in the blank 1 of 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 1 of 2
seats
Economy class seats at break-even fill in the blank 2 of 2
seats

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