Question
Bright travel agency specializes in flights between toronto and jamaica. it books passengers on ottawa air. brights fixed costs are $25,500 per month. ottawa air
Bright travel agency specializes in flights between toronto and jamaica. it books passengers on ottawa air. brights fixed costs are $25,500 per month. ottawa air charges passengers $1,300 per round trip ticket.
Calculate the number of tickets bright must sell each month to (a) break even and (b) make a target operating income of $10,000 per month in each of the following independent cases. (round up to the nearest whole number. ex 10.2 should be 11)
1. Brights variable costs are $44 per ticket. ottawa air pays bright 6% commission on ticket price
2. Brights variable costs are $28 per ticket. ottawa air pays bright 6% commission on ticket price.
3. Brights variable costs are $28 per ticket. ottawa air pays $48 fixed commission per ticket to bright. comment on the results
4. Brights variable costs are $28 per ticket. it receives $48 commission per ticket from ottawa air. it charges its customers a delivery fee of $10 per ticket. comment on the results
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