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Chapter 19 HW Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona,

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Chapter 19 HW Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawali. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $8,620 Flight crew salaries 6,602 Airplane depreciation 3,118 Variable cost per passenger-business class 50 Variable cost per passenger-economy class 40 Round-trip ticket price-business class 510 Round-trip ticket price-economy class 280 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 10% business class and 90% 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 seats Economy class seats at break-even seats

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