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 round-trip flight has the following operating statistics: Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class 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 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 20% business class and 80% economy class seats. $16,920 12,960 6,120 60 50 600 290 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 Economy class seats at break-even eats seats seats Beck Inc. and Bryant Inc. have the following operating data Beck Inc. $321,300 128,900 $192,400 118,400 $74,000 Bryant Inc. $990,000 594,000 $396,000 198,000 $198,000 Sales Variable costs Contribution margin Fixed costs Income from operations a. Compute the operating leverage for Beck Inc. and Bryant Inc. If required, round to one decimal place Beck Inc. Bryant Inc. b. How much would income from operations increase for each company if the sales of each increased by 10%? If required, round answers to nearest whole number. Dollars Percentage Beck Inc. Bryant Inc. c. The difference in the that its fixed costs are a of income from operations is due to the difference in the operating leverages. Beck Inc.'s percentage of contribution margin than are Bryant Inc.'s. operating leverage means