Question
Break-Even Sales and Sales Mix for a Service Company Yellow 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 Yellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis round-trip flight has the following operating statistics: Fuel and landing fees $7,097 Flight crew salaries 5,436 Airplane depreciation 2,567 Variable cost per passengerbusiness class 55 Variable cost per passengereconomy class 45 Round-trip ticket pricebusiness class 525 Round-trip ticket priceeconomy class 305 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 flight. 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 fill in the blank 1 seats b. How many business class and economy class seats would be sold at the break-even point? Round your answers to whole number.
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