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Sunshine airways provides air transportation services between Philadelphia and Orlando. A single Philadelphia to Orlando round-trip flight has the following operating statistics: Fuel $8,200 Flight Crew Salaries 3,700 Airplane Depreciation3,450 Variable Cost per passenger-business class 100 variable cost per passenger-economy lass 75 Round Trip ticket price-business class600 Round Trip Tickets price-economy class 190 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 roud-trip flight for the overall product. Assume that the overall product is 10% business and 90% economy class tickets.

B. How many business class and economy class seats would be sold at the break even point?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9986190

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