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Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides...

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Accounting

Break-Even Sales and Sales Mix for a Service Company
Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:
Fuel $5,452
Flight crew salaries 4,176
Airplane depreciation 1,972
Variable cost per passengerbusiness class 60
Variable cost per passengereconomy class 50
Round-trip ticket pricebusiness class 550
Round-trip ticket priceeconomy class 290
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 enterprise product, E. Assume that the overall product mix is 20% business class and 80% economy class tickets.
Total number of seats at break-even fill in the blank 1 seats
b. How many business class and economy class seats would be sold at the break-even point?
Business class seats at break-even fill in the blank 2 seats
Economy class seats at break-even fill in the blank 3 seats

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