Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. break-even sales and sales mix for a service compa

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

90.2K

Verified Solution

Question

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 $8,258

Flight crew salaries 6,325

Airplane depreciation 2,987

Variable cost per passengerbusiness class 40

Variable cost per passengereconomy class 30

Round-trip ticket pricebusiness class 570

Round-trip ticket priceeconomy class 250

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. If required round the answers to nearest whole number.

a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 10% business class and 90% economy class seats. Total number of seats at break-even?

b. How many business class and economy class seats would be sold at the break-even point?

Business class seats at break-even?

Economy class seats at break-even?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students