Question
CVP analysis, changing revenues and costs. Sunshine Tours is a travel agency specializ- ing in cruises between Miami and Jamaica. It books passengers on Carib
CVP analysis, changing revenues and costs. Sunshine Tours is a travel agency specializ- ing in cruises between Miami and Jamaica. It books passengers on Carib Cruises. Sunshines fixed costs are $22,000 per month. Carib charges passengers $1,000 per round trip ticket. REQUIRED Calculate the number of tickets Sunshine 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. 1. Sunshinesvariablecostsare$35perticketandCaribCruisespaysSunshine8%commission on the ticket price. 2. Sunshines variable costs are $29 per ticket. Carib Cruises pays Sunshine 8% commission on the ticket price. 3. Sunshines variable costs are $29 per ticket. It receives a $48 commission per ticket from Carib Cruises. Comment on the results. 4. Sunshines variable costs are $29 per ticket. It receives a $48 commission per ticket from Carib Cruises. It charges customers a delivery fee of $5 per ticket. Comment on the results
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