Make a Decision: Analyze Global Air's cost$-$volume$-$profit relationships. $($from Chapter $6)$

Obj. $6$ Global Air is considering a new flight between Atlanta and Los Angeles. The average fare per seat for the flight is $$780.$ The costs associated with the flight are as follows:

Fixed costs for the flight:

Crew salaries................................................ $ $4,860$

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

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

Total......................................................... $ $79,860$

Variable costs per passenger:

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

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

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

The airline estimates that the flight will sell $170$ 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?