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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
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 roundtrip flight has the following operating statistics: Fuel $4,756 Flight crew salaries 3,643 Airplane depreciation 1,721 Variable cost per passengerbusiness class 45 Variable cost per passengereconomy class 35 Round-trip ticket pricebusiness class 505 Roundtrip ticket priceeconomy class 265 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. 3. 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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