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Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawai. A single Los Angeles to Kona round-trip flight has the
Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawai. A single Los Angeles to Kona round-trip flight has the following operating statistics: $10,265 7,862 3,713 45 35 525 285 Flight crew salaries Airplane depreciation e cost per passenger Round-trip ticket price-business clas5 Round-trip ticket price-economy c 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 dass and 90% economy class seats. b. How many business class and economy class seats would be sold at the break even point? Type here to search
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