Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaill. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $15,613 11,959 5,648 60 50 570 300 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. a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 20% business class and 80% economy class tickets. Total number of seats at bdsak-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
Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaill. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $15,613 11,959 5,648 60 50 570 300 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. a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 20% business class and 80% economy class tickets. Total number of seats at bdsak-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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 22E
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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, Hawail. A single Los Angeles to Kona round-trip flight has the
following operating statistics:
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
$15,613
11,959
5,648
60
50
570
300
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 company product, M. Assume that the overall product mix is 20% business
class and 80% economy class tickets.
Total number of seats at bdsak-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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F956b79d0-b8ff-4513-ab04-2143e5c531c4%2F7f8e24de-8dc9-4682-88de-225cc518af7f%2Frxouvf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Break-even sales and sales mix for a service company
Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawail. A single Los Angeles to Kona round-trip flight has the
following operating statistics:
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
$15,613
11,959
5,648
60
50
570
300
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 company product, M. Assume that the overall product mix is 20% business
class and 80% economy class tickets.
Total number of seats at bdsak-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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