Question

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.