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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, Hawail. 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, Hawail. A single Los Angeles to Kona round-trip fiight has the following operating statistics: $11,506 Fuel Flight crew salaries 8,813 4,161 Airplane depreciation Variable cost per passenger-business class 60 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 540 270 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. If required round the answers to nearest whole number 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 20% business class and 80% economy class se 65 X seats Total number of seats at break-even b. How many business class and economy class seats would be sold at the break-even point? Business class seats at break-even 13 X seats 52 X seats Economy class seats at break-even Feedback Check y Wark a. Subtract the combined unit variable cost from the combined unit selling price. Divide the fixed costs by the combined unit contribution margin to obtain total break-even units. b. Multiply the break-even units by the percentage of each component
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