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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?
Evaluate the following scenarios, assuming both companies use the accounts receivable method of estimating bad debts expense.
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Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order. Missouri company's change in profits if the order is accepted will be a ______
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