CVP, changing revenues and costs (continuation of 8-12). (20 minutes) Air France changes its commission structure to travel agents. Up to a ticket price of EUR 600, the 8% commission applies. For tickets costing EUR 600 or more, there is a fixed commission of EUR 48. Assume Soleil Voyages has fixed costs of EUR 22,000 per month and variable costs of EUR 29 per ticket Gncluding a EUR 12 delivery fee by TNT).

REQUIRED 1. What is the number of Paris-to-London round-trip tickets Soleil Voyages must sell each month to

(a) break even, and

(b) make a target operating profit of EUR 10,000? Comment on the results.

Soleil Voyages decides to charge its customers a delivery fee of EUR 5 per ticket. How would this change affect your answers to

(a) and

(b) in requirement 1? Comment on the results.  lop1