Global Air is considering a new flight between Atlanta and Los Angeles. The average fare per seat for the flight is $760. The costs associated with the flight are as follows:

Fixed costs for the flight:

Crew salaries.. . . . . . . . . . . . . . . . . . $ 5,000

Operating costs.. . . . . . . . . . . . . . . 50,000

Aircraft depreciation.. . . . . . . . . . 25,000

Total.. . . . . . . . . . . . . . . . . . . . . . . . $80,000

Variable costs per passenger:

Passenger check-in.. . . . . . . . . . . $ 20

Operating costs.. . . . . . . . . . . . . . . 100

Total.. . . . . . . . . . . . . . . . . . . . . . . . $120

The airline estimates that the flight will sell 175 seats.

a. Determine the break-even number of passengers per flight.

b. Based on your answer in (a), should the airline add this flight to its schedule?

c. How much profit should each flight produce?

d. What additional issues might the airline consider in this decision?