Question
Break-Even Sales and Sales Mix for a Service Company Northern Green Airways provides air transportation services between Seattle and San Diego. A single Seattle to
Break-Even Sales and Sales Mix for a Service Company Northern Green 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 $14,608 Flight crew salaries 11,189 Airplane depreciation 5,283 Variable cost per passengerbusiness class 70 Variable cost per passengereconomy class 55 Round-trip ticket pricebusiness class 590 Round-trip ticket priceeconomy class 285 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 product, E. Assume that the overall product is 10% business class and 90% economy class seats. 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? Business class seats at break-even seats Economy class seats at break-even seats
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