Break even sales and sales mix for a service company... I am very quick to write thank you so much in advance!

40 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 $11,506 Flight crew salaries 8,813 Airplane depreciation 4,161 Variable cost per passenger-business class 50 Variable cost per passenger-economy class Round-trip ticket price-business class 540 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. 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 20% business class and 80% economy class seats. Total number of seats at break-even 90 x seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats at break-even Economy class seats at break-even X seats 9 X seats 81 Feedback Previous Next