Jet Green Airways is considering the possibility of introducing new flights between Mumbai, India and Lahore, Pakistan. It can lease the requisite aircraft at $70,000 per aircraft per week. Each aircraft has a capacity of 225 passengers per flight, and can make 28 flights per week. Jet Green intends to charge a fare of $400 per flight (Think of this as a one-way fare not Round trip). Jet Green estimates the following costs: Food, beverages and ticket processing Landing and takeoff fees Flight crew salaries Gate rentals $ 26 per passenger $5,000 per flight $12,000 per flight $8,000 per gate per week Jet Green will need to rent 2 gates if it flies less than 42 flights per week and 4 gates per week if it exceeds 42 flights per week up to a maximum of 84 flights per week. The costs of fuel, baggage handling and aircraft maintenance for the aircraft to be leased is more complex. Statistical analysis reveals the following relationships: Fuel costs(1000)*(number of takeoffs+number of landings)+ (8)*(number of miles flown) +(0.10)*(passenger and baggage weight in lbs.) Baggage handling costs (10) (number of passengers) + (5,000)*(number of flights) Maintenance costs (10,000)*(number of aircraft)+(6,000)*(number of flights) The flying distance between Mumbai and Lahore is 1,200 miles. The average passenger and baggage weight is 200 lbs. per passenger, and (obviously) there is 1 takeoff and 1 landing per flight. Required: If Jet Green leases 1 aircraft and commits to operating 28 flights per week, how many average passengers per flight would be needed to break even over a week's operations? Suppose Jet Green leases 2 aircraft and rents 4 gates, but there is no commitment regarding the number of flights it will offer. Assuming an average demand of 160 passengers per flight, how many flights per week would produce a target expected profit of $425,600 per week? 1. 2. week would produce a tarect expected profit o 45.60 sfor let Green 3. Which of the following two alternatives would yield larger expected weekly profits for Jet Green Lease 1 aircraft and operate 28 flights per week with an expected demand of 190 passengers per flight, or Lease 2 aircraft and operate 48 flights per week with an expected demand of 160 passengers per flight. a. b