CVP, changing revenues and costs. (15-20 minutes) Soleil Voyages, SA, is a travel agency specialising in flights between Paris and London. It books passengers on Air France. Air France charges passengers EUR 1,000 per round-trip ticket. Soleil Voyages receives a commission of 8% of the ticket price paid by the passenger. Soleil Voyages’s fixed costs are EUR 22,000 per month. Its variable costs are EUR 35 per ticket, including an EUR 18 delivery fee by Liévre-Express, SA. (Assume each ticket purchased is delivered in a separate package; thus the delivery fee applies to every individual ticket.)

REQUIRED 1. What is the number of tickets Soleil Voyages must sell each month to

(a) break even, and

(b) make a target operating profit of EUR 10,000?

Assume Tortue-Express, SA, offers to charge Soleil Voyages only EUR 12 per ticket delivered. How would accepting this offer affect your answers to (a)

and

(b) in requirement 1?  lop1