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PART 11-(13 POINTS) Ruben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline
PART 11-(13 POINTS) Ruben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages, Fixed costs are $5,000. Required 1. What is the contribution margin per ticket package? 2. What is the contribution margin ratio? 3. How many ticket packages will Ruben need to sell to break even? 4. How many ticket packapes will Ruben need to sell in order to achieve $60,000 of operating income? 5. For every $25.000 of ticket packages sold, what will be the increase in operating Income? HINT: Use the contribution margin ratio
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