CVP analysis, changing revenues and costs (15pts). Sunny Spot Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Canadian Air. Sunny Spots fixed costs are $23,500 per month. Canadian Air charges passengers $1,500 per round-trip ticket.

Instructions: Calculate the number of tickets Sunny Spot must sell each month to (a) break even and (b) make a target operating income of $17,000 per month in each of the following independent cases.

Sunny Spots variable costs are $43 per ticket. Canadian Air pays Sunny Spot 6% commission on ticket price. (Remember the Comission is 6% of the ticket price of $1,500, calculate the commission)

Sunny Spots variable costs are $40 per ticket. Canadian Air pays Sunny Spot 6% commission on ticket price.