How many business class and tourist seats would be sold


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.

  1. 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.
  2. How many business class and tourist seats would be sold at the break - even point?

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Accounting Basics: How many business class and tourist seats would be sold
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