1. Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A...

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1. Zero Turbulence Airline provides air transportation servicesbetween Los Angeles, California; and Kona, Hawaii. A single LosAngeles to Kona round-trip flight has the following operatingstatistics: Fuel $14,062 Flight crew salaries 10,771 Airplanedepreciation 5,087 Variable cost per passenger—business class 50Variable cost per passenger—economy class 40 Round-trip ticketprice—business class 530 Round-trip ticket price—economy class 260It is assumed that the fuel, crew salaries, and airplanedepreciation are fixed, regardless of the number of seats sold forthe round-trip flight. If required round the answers to nearestwhole number. a. Compute the break-even number of seats sold on asingle round-trip flight for the overall product, E. Assume thatthe overall product is 20% business class and 80% economy classseats. Total number of seats at break-even seats b. How manybusiness class and economy class seats would be sold at thebreak-even point? Business class seats at break-even seats Economyclass seats at break-even seats

2. For a recent year, Wicker Company-owned restaurants had thefollowing sales and expenses (in millions):

Sales$22,000
Food and packaging$8,180
Payroll5,500
Occupancy (rent, depreciation, etc.)4,460
General, selling, and administrative expenses3,200
$21,340
Income from operations$660

Assume that the variable costs consist of food and packaging,payroll, and 40% of the general, selling, and administrativeexpenses.

a. What is Wicker Company's contributionmargin? Round to the nearest million. (Give answer in millions ofdollars.)
$ million

b. What is Wicker Company's contribution marginratio? Round to one decimal place.
%

c. How much would income from operationsincrease if same-store sales increased by $1,300 million for thecoming year, with no change in the contribution margin ratio orfixed costs? Round your answer to the closest million.
$ million

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