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Part III - resolve the following exercise (50 points) Jet West Bookings specializes in flights between Orlando and Canada. It books passengers on Air South
Part III - resolve the following exercise (50 points) Jet West Bookings specializes in flights between Orlando and Canada. It books passengers on Air South I Blue. Jet West's fixed costs are $24,000 per month. South Blue charges passengers $1,700 per round-trip ticket. Calculate the number of tickets Jet West must sell each month to (a) break even and (b) make a target operating income of $15,000 per month in each of the following independent cases. Required: 1. Jet West's variable costs are $45 per ticket. Air South Blue pays Jet West 5% commission on ticket price. 2. Jet West's variable costs are S40 per ticket. Air South Blue pays Jet West 5% commission on ticket price. 3. Jet West's variable costs are $40 per ticket. Air South Blue pays S60 fixed commission per ticket to Jet West. Comment on the results. 4. Jet West's variable costs are $40 per ticket. It receives S60 commission per ticket from Air South Blue. It charges its customers a delivery fee of $5 per ticket Comment on the results
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