Cost-Volume-Profit Calculations and Graphing This is a "placeholder" for a custom CVP question that you will answer on your scratch paper, and a place for me to enter the grade. Assume your travel company, Travel the World, is considering hiring a reservations agency to handle passenger reservations. Costs: Your travel company must pay a flat fee of $250 per month, plus $150 per passenger reservation to the agency. Revenues: Your company is charging each passenger $200. Calculating

Costs:

Youll be calculating (and ultimately graphing) costs if0-15 passengers take the trip next month.

1. Fixed Costs

2. Variable Costs

3. Total Costs

4. Total Revenues, if for each of those passengers, you charge

$200.

Legibly show the following calculations somewhere on your paper:

1. Contribution Margin. Write

"CM"

so that I will know what you have calculated.

2. Break-Even Point. Round to the next whole passenger. Write

"BEP"

so that I will know what you have calculated.

Graphing:

Using the graph that I have provided in the module, graph the following for up to 15 passengers:

1. Fixed Costs, and label the line

"FC"

2. Variable Costs with Total Costs, and label the line

"VC

and

TC"

3. Total Revenue, and label the line

"REV"

4. Label Break-Even Point as

"BEP"

5. Label and Shade Net Income area

6. Label and Shade Net Loss area