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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:



Flight crew salaries


Airplane depreciation


Variable cost per passenger—business class


Variable cost per passenger—tourist class


Round trip ticket price—business class


Round trip ticket price—tourist class


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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