Zero Turbulence Airline provides air transportation services between Los Angles, California and Kona, Hawaii A single Los Angles to Kona round-trip fight has the following operating statistics:
Fuel $12,098
Flight crew salaries 9,266
Airplane depreciation 4,376
Variable cost epr passenger-business calss 45
Variable cost per passenger -economy class 35
Round -Trip ticket price -business class 515
Round-Trip ticket price -economy class 275
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. If required round the answers to the nearest whole number.
a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E Assume that the overall product is 20% business class and 80% economy class seats.
Total number of seats at break-even fill in the blank 1 seats
b. How many business class and economy class sets would be sold at the break -ven point?
Business-class seats at break-even fill in the blank 2 seats
Economy class seats at break-even fill in the blank 3 seats.