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10-16 CVP analysis, changing revenues and costs. Rasheed Al Habeeb Travel Agency specializes in flights between Bahrain and Manila. It books passengers on Gulf Air.

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10-16 CVP analysis, changing revenues and costs. Rasheed Al Habeeb Travel Agency specializes in flights between Bahrain and Manila. It books passengers on Gulf Air. Rasheed Al Habeeb's fixed costs are US$23,500 per month. Gulf Air charges passengers US$1,500 per round-trip ticket. Calculate the number of tickets Rasheed Al Habeeb must sell each month to (a) break even and (b) make a target operating income of US$17,000 per month in each of the following independent cases. 1. Rasheed Al Habeeb's variable costs are US$43 per ticket. Gulf Air pays Rasheed Al Habeeb 6% com- mission on ticket price. 2. Rasheed Al Habeeb's variable costs are US$40 per ticket. Gulf Air pays Rasheed Al Habeeb 6% com- mission on ticket price. 3. Rasheed Al Habeeb's variable costs are US$40 per ticket. Gulf Air pays US$60 fixed commission per ticket to Rasheed Al Habeeb. Comment on the results. 4. Rasheed Al Habeeb's variable costs are USS40 per ticket. It receives US$60 commission per ticket from Gulf Air. It charges its customers a delivery fee of US$5 per ticket Comment on the results

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