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

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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 $8,065 6,178 Flight crew salaries Airplane depreciation 2,917 Variable cost per passenger-business class 65 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 535 Round-trip ticket price-economy 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 seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats at break-even seats Economy class seats at break-even seats

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