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Brilliant Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Georgetown Air. Brilliant's fixed costs are $21,000 per month. Georgetown Air
Brilliant Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Georgetown Air. Brilliant's fixed costs are $21,000 per month. Georgetown Air charges passengers $1,200 per round-trip ticket. Read the requirement Begin by selecting the formula to calculate the breakeven points. Requirement number of units Next, select the formula to calculate the numher of tickets needed to meet the target operating income Calculate the number of tickets Brilliant must sell each month to (a) break evern and (b) make a target operating income of $17,000 per month in each of the following independent cases. (Round up to the nearest whole number. For example, 10.2 should be rounded up to 11.) 1. Brilliant's variable costs are $36 per ticket, Georgetown Ar pays Brilliant 8% Quantity of units required to be sold Now complete the requirement tor each ot the cases. Begin with case 1. Case 1: Brilliant's variable costs are $36 per ticket. Georgetown Air pays Brilliant 8% commission on ticket price commission on ticket price. 2. Brilliant's variable costs are $26 per ticket, Georgetown Ar pays Brilliant 8% 3. Brilliant's variable costs are $26 per ticket. Georgetown Air pays $46 fixed 4. Brilliant's variable costs are $26 per ticket It receives $46 commission per commission on ticket price. illiant must sellickets to break even and tickets to meet the target operating income commission per ticket to Brilliant. Comment on the results. Case 2: Brilliant's variable costs are $26 per ticket. Georgetown Air pays Brilliant 8% commission on ticket price Brilliant must sell Case 3: Brilliant's variable costs are $26 per ticket. Georgetown Air pays $46 fixed commission per ticket to Brilliant. Comment on the results Brilliant must sell ticket from Georgetoum Air. It charges its customers a delivery fee of $4 per ticket. Comment on the results. tickets to meet the target operating income Print Done tickets to break even and tickets to meet the target operating income
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