Question
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawail. A
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawail. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class $8,573 6,566 3,101 50 Variable cost per passenger-economy class 40 Round-trip ticket price-business class 570 290 Round-trip ticket price-economy class 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 enterprise product, E. Assume that the overall product mix is 20% business class and 80% economy class tickets 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 Economy class seats at break-even Feedback 50 X seats 40 X seats
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started