Southwest Blue Airways provides air transportation services between Seattle and San Diego. A single Seattle to San Diego round-trip flight has the following operating statistics:

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 product. Assume that the overall product is 20% business class and 80% economy class tickets.
b. How many business class and economy class seats would be sold at the break-evenpoint?

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Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class cost per passenger-economy class Round-trip ticket price-business class Round-trip ticket price-economy class $7,000 5,400 2,600 50 40 550 290