Book eak-Even Sales and Sales Mix for a Service Company ero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the llowing operating statistics: uel light crew salaries irplane depreciation Wariable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class Round-trip ticket price-economy class 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. $6,439 4,932 2,329 Check My Work 2 more Check My Work uses remaining. 65 50 555 270 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 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 seats ator=&inprogress=false seats seats 0 Previous Next

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fuel
Flight crew salaries
Airplane depreciation
Variable cost per passenger-business class
Variable cost per passenger-economy class
Round-trip ticket price-business class
Round-trip ticket price-economy class
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.
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:
Total number of seats at break-even
Business class seats at break-even
$6,439
4,932
2,329
Economy class seats at break-even
65
Check My Work 2 more Check My Work uses remaining.
50
555
270
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.
b. How many business class and economy class seats would be sold at the break-even point?
Locator=&inprogress=false
seats
seats
seats
凸☆
□ Ⓡ
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Transcribed Image Text:eBook Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class Round-trip ticket price-economy class 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. 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: Total number of seats at break-even Business class seats at break-even $6,439 4,932 2,329 Economy class seats at break-even 65 Check My Work 2 more Check My Work uses remaining. 50 555 270 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. b. How many business class and economy class seats would be sold at the break-even point? Locator=&inprogress=false seats seats seats 凸☆ □ Ⓡ Previous Next >
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