Assignment: Ch 21-4 Exercises & Problems Check M Break-Even Sales and Sales Mix

Question

Assignment: Ch 21-4 Exercises & Problems Check M Break-Even Sales and Sales Mix for a Service Company 9 Northem Green Airways provides air transportation services between Seattle and San Diego A single Seattle to San Diege round-trip ight has the following operating statistics Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-ecenomy dass Round-trip ticket price-business class Round-trip ticket price-economy dass R is assumed that the fuel, crew salaries, and airglane depr 10,791 8.266 3,903 eclation are fixed, regardless of the number of seats sold for the round-trip flight the break even number of seats sold on a single round trip mght for the overal product, E. Assume that the overa product is 10% bsiness class and 90% economy Total number of seats at break -even b. How many business class and economy lusiness dass seats at break-even Economy class seats at break-ever many business class and ecomomy class seats would be sold at the break even point seats Check H Exercise 21 22 (Aigorithmic)

Explanation / Answer

We know break even point is no profit and loss point

So Sales          =   Variable cost + Fixed cost

let seats be x

585x(10%) + 305 x(90%) = 55x(10%) + 45X(90%) + $22,960

333X                                   = 46X + 22,960

X                                        = 80 seats

b) business class       = 80@10% = 8

Economy class           =80@90% = 72

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.