Solution-How many business class and economy class seats

How many business class and economy class seats

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Reference no: EM131747672

Break-Even Sales and Sales Mix for a Service Company

Northern Green Airways provides air transportation services between Seattle and San Diego. A single Seattle to San Diego round-trip flight has the following operating statistics:

Fuel	$10,002
Flight crew salaries	7,661
Airplane depreciation	3,617
Variable cost per passenger-business class	65
Variable cost per passenger-economy class	50
Round-trip ticket price-business class	565
Round-trip ticket price-economy class	290

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 product, E. Assume that the overall product is 10% business class and 90% 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 break-even point?

Business class seats at break-even	seats
Economy class seats at break-even	seats

Reference no: EM131747672

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How many business class and economy class seats

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