Sh 10Please hell me Break-even sales and sales mix for a service companyTurbulence 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:ZeroFuelFlight crew salariesAirplane depreciationVariable cost per passenger-business classVariable cost per passenger-economy class35Round-trip ticket price-business class555295Round-trip ticket price-economy classIt is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight.$14,73511,2865,32945a. 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 10% business class and 90% economy class tickets.Total number of seats at break-evenX seatsb. How many business class and economy class seats would be sold at the break-even point?Business class seats at break-evenX seatsEconomy class seats at break-evenX seats

Answer : Fixed cost = Fuel + Flight crew salaries + Airplane depreciation Fixed cost = 14,735 +…

Answered: ger-business class ger-economy class…

Business

Accounting

ger-business class ger-economy class business class -economy class 45 35 555 295

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, Hawaii. 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 $8,065 6,178 2,917 55 45 Round-trip ticket price-business class 525 285 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 break-even seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats…
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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, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $8,798 6,739 Flight crew salaries Airplane depreciation 3,183 Variable cost per passenger-business class 65 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 545 Round-trip ticket price-economy class 320 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 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 seats b. How many business class and economy class seats would be sold at the…
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