Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services...

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Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawall. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel Flight crew salaries Airplane depreciation $8,798 6,739 3,183 70 Variable cost per passenger-economy class 55 Round-trip ticket price-business class 590 315 Variable cost per passenger-business class Round-trip ticket price-economy class 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 company product, M. Assume that the overall product mix is 20% business class and 80% 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 Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawall. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel Flight crew salaries Airplane depreciation $8,798 6,739 3,183 70 Variable cost per passenger-economy class 55 Round-trip ticket price-business class 590 315 Variable cost per passenger-business class Round-trip ticket price-economy class 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 company product, M. Assume that the overall product mix is 20% business class and 80% 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

Answer rating: 100% (QA)

To compute the breakeven number of seats sold on a single roundtrip flight for the overall company product we need to consider the fixed costs and the ... View the full answer