The following information is provided by A airlines and they are seeking your professional advice on how many tickets they should sell in one of their sector flight to reach to a break-even point. The Breakeven point is assigned by their Board of Directors to ensure the airlines survive financially during the COVID19:

Variable Cost per hour (B737): $5,000

Annual Fixed Cost: $8,000,000

Fixed cost per flight: $4,444.44 (Total fixed cost/No. of flights in year, assumed)

KBL-IST Flight?

Flight Duration: 5 Hours

No. of flights in the year, assumed: 1,800 flights (5 flights per day)

Variable Cost per hour (B737): $5,000

The Aircraft (B737): 120 seats, can carry up to 120 passengers

Variable Cost per Passenger: $208 ($25,000/120 seats)

Total Variable Cost per IST one-way flight (B737): $25,000 ($5,000 X5 H) for B737 aircraft

Fixed cost per flight, assumed: $4,444.44 (Total fixed cost/No. of flights in year

Price per ticket one-way: $345

Required:

1. How much tickets they should sell in the KBL-IST flight to reach to a break-even point?