Jet Green Airways is considering the possibility of introducing new flights between Mumbai, India and Lahore, Pakistan. It can lease the requisite aircraft at $70,000 per aircraft per week. Each aircraft has a capacity of 225 passengers per flight, and can make 28 flights per week. Jet Green intends to charge a fare of $400 per flight (Think of this as a one-way fare not Round trip). Jet Green estimates the following costs: Food, beverages and ticket processing Landing and takeoff fees Flight crew salaries Gate rentals $ 26 per passenger F $5,000 per flight $12,000 per flight $ 8,000 per gate per week Jet Green will need to rent 2 gates if it flies less than 42 flights per week and 4 gates per week if it exceeds 42 flights per week up to a maximum of 84 flights per week. The costs of fuel, baggage handling and aircraft maintenance for the aircraft to be leased is more complex. Statistical analysis reveals the following relationships: Fuel costs = (1000)*(number of takeoffs +number of landings) + (8)*(number of miles flown) + (0.10)*(passenger and baggage weight in lbs.) Baggage handling costs - (10)*(number of passengers) + (5,000)*(number of flights) Maintenance costs = (10,000) "(number of aircraft) + (6,000)*(number of flights) The flying distance between Mumbai and Lahore is 1,200 miles. The average passenger and baggage weight is 200 lbs. per passenger, and (obviously) there is 1 takeoff and 1 landing per flight. Required: 1. If Jet Green leases 1 aircraft and commits to operating 28 flights per week, how many average passengers per flight would be needed to break even over a week's operations? 2. Suppose Jet Green leases 2 aircraft and rents 4 gates, but there is no commitment regarding the number of flights it will offer. Assuming an average demand of 160 passengers per flight, how many flights per week would produce a target expected profit of $425,600 per week? 3. Which of the following two alternatives would yield larger expected weekly profits for Jet Green: a. Lease 1 aircraft and operate 28 flights per week with an expected demand of 190 passengers per flight, or b. Lease 2 aircraft and operate 48 flights per week with an expected demand of 160 passengers per flight. 4. The marketing manager of Jet Green is contemplating the following plan: Lease two aircraft, operate 48 flights per week, but reduce the airfare to $350. How many passengers per flight would be needed to make the same amount of profit as in alternative (a) of question (3) above