accounting questions

hour pochy. [11 marks] QUESTION 2 [25 MARKS] Dusty Baker owns a sports brokerage agency and sells tickets to major league baseball, football, and basketball games. He also sells sports travel packages that include game tickets, airline tickets, and hotel accommodations. Revenues are comrrissions based as follows: Game ticket sales 8% commission Airline ticket sales 10% commission Hotel bookings sales 20% commission Monthly fixed costs include the following iterrs: Advertising $1, 100 Rent $900 Utilities $250 Other costs $2,200 There are no variable costs. A typical month generates the following sales amounts that are subject to the stated commission structure: Game tickets $30,000 Airline tickets $4,500 Hotel bookings $7,000 Required: 1. Determine Baker's normal monthly profit (loss). [5 marks] The following questions are independent of each other: 2. Baker estimates that airline bookings can be increased by 40% if he increases advertising by $600. Should he increase advertising? Justify your answer. [5 marks]