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Break-Even Sales and Sales Mix for a Service Company ellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis
Break-Even Sales and Sales Mix for a Service Company ellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis round-trip flight has the following operatin statistics: Fuel and landing fees $9,024 Flight crew salaries 6,912 Airplane depreciation Variable cost per passenger--business class 3,264 70 Variable cost per passenger-economy class 55 Round-trip ticket price business class 590 Round-trip ticket price-economy class 325 It is assumed that the fuel and landing fees, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip night. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 20% business class and 80% economy class tickets, Round your answer to whole number Total number of seats at break even seats b. How many business class and economy class seats would be sold at the break even point? Round your answers to whole number Business class Seats Economy class seats
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