=+Adventure Travel Agency specialises in tour packages between Melbourne and Alice Springs. It books passengers on Qantas at $900 per round-trip package. Until last month, Qantas paid Adventure Travel a commission of 10% of the package price paid by each passenger. This commission was Adventure Travel’s only source of revenues. Adventure Travel’s fixed costs are $14000 per month

(for salaries, rent, etc.) and its variable costs are $20 per package purchased for a passenger. This

$20 includes a $15 per package delivery fee paid to Australia Post. (To keep the analysis simple, we assume each round-trip package purchased is delivered separately. Thus the $15 delivery fee applies to each tour package.)