CVP analysis, changing revenues and costs. Sunshine lours is a travel agency specializing in cruises between Toronto and Jamaica. It books passengers on Carib Cruises. Carib Cruises charges passengers $1,200 per round-trip ticket. Sunshine receives a commission of 8% ofthe ticket price paid by the passenger. Sunshine’s fixed costs are $26,400 per month. Its variable costs are $42 per ticket, including a $21.60 delivery fee by Emory Express. (Assume each ticket purchased is delivered in a separate package; thus the delivery fee applies to every indi¬

vidual ticket.)

Required 1. What is tlie number oftickets Sunshine must sell each month to

(a) break even and

(b) make a target operating income of $12,000?
2. Assume Emory Express offers to charge Sunshine only $14.40 per ticket delivered. How would accepting this offer affect your answers to

(a) and

(b) in requirement 1?