Break-Even Sales and Sales Mix for a Service Company Yellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis round-trip flight has the followi operating statistics: Fuel and landing fees $10,331 Flight crew salaries 7,913 Airplane depreciation 3,736 Variable cost per passenger-business class 60 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 590 Round-trip ticket price-economy class 310 It is assumed that the fuel and landing fees, 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 product. Assume that the overall product is 20% business class and 80% economy class tickets. Round your answer to whole number. 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? Round your answers to whole number. Business class seats
Break-Even Sales and Sales Mix for a Service Company Yellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis round-trip flight has the followi operating statistics: Fuel and landing fees $10,331 Flight crew salaries 7,913 Airplane depreciation 3,736 Variable cost per passenger-business class 60 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 590 Round-trip ticket price-economy class 310 It is assumed that the fuel and landing fees, 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 product. Assume that the overall product is 20% business class and 80% economy class tickets. Round your answer to whole number. 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? Round your answers to whole number. Business class seats
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter25: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 1MAD: Analyze Pacific Airways Pacific Airways provides air travel services between Los Angeles and...
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