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Travelocity provides travel services on the Intemet 2011 was an important year for Travelocity as a reported positive operating income after 3 years of operating losses In the first quarter of 2010 Travelocity reported an operating loss of $37 million on sales revenue of $57 million in the first quarter of 2011, sales revenue had more than doubled to $123 million, and Travelocity had operating income of $25 milion Assume that fixed costs were the same in 2011 as in 2010 Requirements 1. Compute the operating expenses for Travelocity in the test quarter of 2010 and in the first quarter of 2011 2. Determine the cost function for Travelocity that is the total fixed cost and the variable cost as a percentage of sales revenue 3. Explain how Travelocity's operating income could increase by $62 million with an increasen sales of $86 million, while it had an operating loss of $37 million on its $57 million of sales in the first quarter of 2010 2010 57 milions 2011 123 million Sales revenue $ Less Operating income doss) 37 milion 25 milion S 94 million $ Operating expenses '98 million Requirement 2. Dotermine the cost function for Travelocity that is, the total fixed cost and the variable costas a percentage of sales revenue (Enter the total foxed cost in millions rounded to the nearest million, "XX" Enter variable cost in docimal form to two decimal placos, XX) 91 000 Requirement 3. Explain how Travelocity's operating income could increase by s62 million with an incronse in sales of $66 million, while thad an operating loss of $37 million on its $S7 million of sales in the first quarter of 2010 the increased sales in 2011 went directly to in 2011 wiped out the Because the entire The increased Click to select your answers) and then click Check Answer 2010 2011 Sales revendo S 57 million $ 123 million Less Operating income (loss) (37) 25 million million $ 38 Operating million fixed costs do not change Requiren locity that is the total fixed cost and the variable cost as a percentage of sales revenue (Enter the total fix cost in mi operating income does not chango nter variable cost in decimal form to two decimal places; XX) Y sales do not change total costs do not change Requiren come could increase by $62 million with an increase in salos of 566 million, while it had an operating loss $37 milio variable costs do not change of 2010 Because the increased sales in 2011 went directly to the entire in 2011 wiped out the The increased Requirement 3. Explain how Travelocity's operating income could increase by $62 milion with an increase in sales of 566 million while it had an operating loss of $37 million on its $57 million of sales in the last quarter of 2010 Because the entire the increased sales in 2011 went directly to The increased additional contribution margin provided by additional variable costs provided by Click to select your answer(s) and then click Check Am decrease in fixed costs from All parts showing Clear All Final Check o Requirement 2. Determine the cost function for Travelocity that is, the total fixed cost and the variable cost as a percentage of sales revenu cost in millions rounded to the nearest million, "XX" Entet variable cost in decimal form to two decimal places, XX) 0.00 X foxed costs Travelocity's operating income could increase by $62 million with an increase in sales of $86 milion while it ha operating income of sales in the first quarter of 2010 total sales the entire the increased sales in 2011 went direc The increased in 2011 wiped out the Click to select your answer(s) and then click Check Answer Requirement 2. Determine the cost function for Travelocity that is the total fixed cost and the variable cost as a percentage of sales revenue (Entert cost in millions rounded to the nearest million "XX" Erter variable cost in decimal form to two decimal places, XX) 91 Y 0 contribution margin Requirement 3. Explain how Travel $37 million on its 557 million of sales d increase by $62 million with an increase in sales of 500 million while it had an opera fixed costs variable costs Because the increased sales in 2011 went directly to The increased in 2011 wiped out the Click to select your answers) and then click Check Answer Question Help %E3-30 (similar to) ds 3 Travelocity provides travel Services on the Internet 2011 was an important year for Travelocity as a reported positive operating income after 3 years of operating I in the first quarter of 2010, Travelocity reported an operating loss of $37 million on sales revenue of $57 million in the first quarter of 2011, sales revenue had mo doubled to $123 million and Travelocity had operating income of $25 million Assume that fixed costs were the same in 2011 as in 2010 Requirements 1. Compute the operating expenses for Travelocity in the first quarter of 2010 and in the first quarter of 2011 2. Determine the cost function for Travelocity that is the total food cost and the variable costas a percentage of sales revenue 3. Explain how Travelocity's operating income could increase by 502 million with an increase in sales of $66 million while it had an operating loss of $37 milion $57 mibion of sales in the first quarter of 2010 2010 2011 $ 123 million Solos revenue Loss Operating income oss) Operating expenses 57 millions (37) million 94 5 million 25 milion 99 million Requirement 2. Determine the cost function for Travelocity that is, the total foxed cost and the variable costas a percentage of sales revenue (Enter the total face cost in millions founded to the nearest million, XX" Entor variable costin decimal form to two decimal places, XX 01 0.00 X sales of 500 million while it had an operating loss o additional variable costs in 2011, resulting in operating income for 2011 fixed costs in 2010, resulting in operating income during 2011 operating loss trom 2010, with additional contribution margin resulting in operating income for 2011 eased sales in 2011 went directly to Click to select your answers) and then click Check Answer 811 narte showinn Clear All Final Check