Compute the break - even number of seats sold ona single

Reference no: EM13614916

Fly-by-Night Airways provides air transportation servicesbetween New York and Miami. A single New York to Miamiround-trip has the following operating statistics:

Fuel 3,540

Flight crewsalaries 7,310

Airplanedepreciation 2,995

Variable cost per passenger - businessclass 45

Variable cost per passenger - touristclass 35

Round - trip ticket price - businessclass 350

Round - trip ticket price - touristclass 225

It is assumed that the fuel, crew salaries, and airplanedepreciation are fixed, regardless of the number of seats sold forthe round - trip flight.

Compute the break - even number of seats sold ona single round - trip flight for the overallproduct. Assume that the overall product is 20% business classand 80% tourist class tickets.
How many business class and tourist seats would be sold at the break - even point?

Reference no: EM13614916

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