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eBook Print Item 19 Break Even Sales and Sales Mix for a Service Company) Zero Turbulence Airline provides air transportation services between Los Angeles,
eBook Print Item 19 Break Even Sales and Sales Mix for a Service Company) Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawan. 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 $5,899 4,518 2,133 60 50 590 270 4 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 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 Economy class seats at break-even seats seats
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