Golden Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Oshawa Air. Golden's fixed costs are $$27,000$ per month. Oshawa Air charges passengers $$1,000$ per round$-$trip ticket.

Read the requirement.

Begin by selecting the formula to calculate the breakeven points.

Breakeven

number of units $=$

Fixed costs

Contribution margin per unit

Next, select the formula to calculate the number of tickets needed to meet the target operating income.Now complete the requirement for each of the cases. Begin with case $1.$Case $1$: Golden's variable costs are $$30$ per ticket. Oshawa Air pays Golden $8\%$ commission on ticket price.Golden must sell $$ tickets to break even and $880$ tickets to meet the target operating income.

Case $2$: Golden's variable costs are $$26$ per ticket. Oshawa Air pays Golden $8\%$ commission on ticket price.

Golden must sell $$ tickets to break even and $$ tickets to meet the target operating income.

Requirement

Calculate the number of tickets Golden 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. $($Round up to the nearest whole number. For example, $10\mathrm{.}2$ should be rounded up to $11.)$

Golden's variable costs are $$30$ per ticket. Oshawa Air pays Golden $8\%$ commission on ticket price.

Golden's variable costs are $$26$ per ticket. Oshawa Air pays Golden $8\%$ commission on ticket price.

Golden's variable costs are $$26$ per ticket. Oshawa Air pays $$50$ fixed commission per ticket to Golden. Comment on the results.

Golden's variable costs are $$26$ per ticket. It receives $$50$ commission per ticket from Oshawa Air. It charges its customers a delivery fee of $$6$ per ticket. Comment on the results.