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not by handwriting please and asap Salam Travel Agency specializes in flights between Dubai and the USA. It books passengers on Etihad Airlines at $1200
not by handwriting please and asap
Salam Travel Agency specializes in flights between Dubai and the USA. It books passengers on Etihad Airlines at $1200 per round-trip ticket. Until last month, Etihad paid Salam a commission of 9% of the ticket price paid by each passenger. This commission was Salam's only source of revenue. Salam's fixed costs are $18,000 per month (for salaries, rent, and so on), and its variable costs, such as sales commissions and bonuses, are $28 per ticket purchased for a passenger. Etihad Airlines has just announced a revised payment schedule for all travel agents. It will now pay travel agents a 9% commission per ticket up to a maximum of $50. Any ticket costing more than $500 generates only a $50 commission, regardless of the ticket price. Salam's managers are concerned about how Etihad's new payment schedule will affect its breakeven point and profitability. Required: Under the old 9% commission structure, how many round-trip tickets must Salam sell each month to break evenStep by Step Solution
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