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 | $12,878 |
Flight crew salaries | 9,864 |
Airplane depreciation | 4,658 |
Variable cost per passengerbusiness class | 65 |
Variable cost per passengereconomy class | 50 |
Round-trip ticket pricebusiness class | 555 |
Round-trip ticket priceeconomy class | 300 |
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 is 10% business class and 90% economy class seats.
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 | seats |
Economy class seats at break-even | seats |
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