fly by night airways provides air transportation services between new york and miami 647686

Fly by Night Airways provides air transportation services between New York and Miami. A single New York to Miami round trip flight has the following operating statistics:

Fuel

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$3,540

Flight crew salaries

7,310

Airplane depreciation

2,995

Variable cost per passenger—business class

45

Variable cost per passenger—tourist class

35

Round trip ticket price—business class

350

Round trip ticket price—tourist class

225

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 round trip flight for the overall product. Assume that the overall product is 20% business class and 80% tourist class tickets.

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

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