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: Line Item Description Amount Fuel $14,758 Flight crew salaries 11,304 Airplane depreciation 5,338 Variable cost per passenger—business class 50 Variable cost per passenger—economy class 40 Round-trip ticket price—business class 540 Round-trip ticket price—economy class 310 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 break-even fill in the blank 1 of 1 seats b. How many business class and economy class seats would be sold at the break-even point?Business class seats at break-even fill in the blank 1 of 2 seatsEconomy class seats at break-even fill in the blank 2 of 2 seats
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: Line Item Description Amount Fuel $14,758 Flight crew salaries 11,304 Airplane depreciation 5,338 Variable cost per passenger—business class 50 Variable cost per passenger—economy class 40 Round-trip ticket price—business class 540 Round-trip ticket price—economy class 310 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 break-even fill in the blank 1 of 1 seats b. How many business class and economy class seats would be sold at the break-even point?Business class seats at break-even fill in the blank 1 of 2 seatsEconomy class seats at break-even fill in the blank 2 of 2 seats
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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:
| Line Item Description | Amount |
|---|---|
| Fuel | $14,758 |
| Flight crew salaries | 11,304 |
| Airplane |
5,338 |
| Variable cost per passenger—business class | 50 |
| Variable cost per passenger—economy class | 40 |
| Round-trip ticket price—business class | 540 |
| Round-trip ticket price—economy class | 310 |
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 break-even fill in the blank 1 of 1 seats
b. How many business class and economy class seats would be sold at the break-even point?
Business class seats at break-even fill in the blank 1 of 2 seats
Economy class seats at break-even fill in the blank 2 of 2 seats
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