Question
Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following
Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $8,347 Flight crew salaries 6,394 Airplane depreciation 3,019 Variable cost per passengerbusiness class 45 Variable cost per passengereconomy class 35 Round-trip ticket pricebusiness class 525 Round-trip ticket priceeconomy class 285 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 20% business class and 80% economy class tickets. Total number of seats at break-even fill in the blank 1 seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats at break-even fill in the blank 2 seats Economy class seats at break-even fill in the blank 3 seats
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