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Brisbane Travel Agency (BTA) specialises in tour tickets between Brisbane and Los Angeles. It books passengers in Virgin Australia. BTAs fixed costs are $4000 per
Brisbane Travel Agency (BTA) specialises in tour tickets between Brisbane and Los Angeles. It books passengers in Virgin Australia. BTAs fixed costs are $4000 per month. Virgin Australia charges passengers $1100 per round-trip ticket. BTA receives a 10 per cent commission on per ticket sold. BTAs variable cost per unit related to ticket sales is $60 per ticket.
Required:
- Calculate the number of tickets BTA must sell each month to 1. Break-even in units and dollar and 2. Make a target profit of $2500 per month?
- What is a margin of safety? Calculate the margin of safety for BTA in April if the actual sales in April is $16500?
- Calculate the contribution margin ratio of BTA. By using very simplest way calculate the profit in April.
- BTA from Virgin Australia that it will pay $65 fixed commission on per ticket to BTA. BTAs variable costs are $40 per ticket. It charges its customers a delivery fee of $5 per ticket. Calculate Break-Even Point in units and dollars and comment on the results.
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