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 $5,020 Flight crew salaries 3,845 Airplane depreciation 1,815 Variable cost per passenger-business class 60 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 570 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 10% business class and 90% economy class tickets. Total number of seats at break-even seats b. How many business class and economy class seats woutd be sold at the breakreven point? seats Business class seats at break-even seats Economy class seats at break-even

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 $5,020 Flight crew salaries 3,845 Airplane depreciation 1,815 Variable cost per passenger-business class 60 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 570 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 10% business class and 90% economy class tickets. Total number of seats at break-even seats b. How many business class and economy class seats woutd be sold at the breakreven point? seats Business class seats at break-even seats Economy class seats at break-even

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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