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Please help me with the following: Wembley Travel Agency specialises in flights between Johannesburg and Cape Town. It books passengers on South African Airways at
Please help me with the following: Wembley Travel Agency specialises in flights between Johannesburg and Cape Town. It books passengers on South African Airways at R per roundtrip ticket. Until last month, South African Airways paid Wembley a commission of of the ticket price paid by each passenger. This commission was Wembleys only source of revenue. Wembleys fixed costs are R per month for salaries, rent, etc. and its variable costs are R per ticket purchased for a passenger. This R includes a R per ticket delivery fee paid to Federal Express. Assume that each roundtrip ticket purchased is delivered in a separate package. Thus, the R delivery fee applies to each ticket. South African Airways has just announced a revised payment schedule for all travel agents. It will now pay travel agents a commission per ticket up to a maximum of R Any ticket costing more than R generates only a R commission, regardless of the ticket price. Required: Under the old commission structure, how many roundtrip tickets must Wembley sell each month to break even a and to earn an operating income of RbHow does South African Airways revised payment schedule affect your answers to a and b in requirement Please only assist me for question which asks "How does South African Airway's revised payment schedule affect your answers to a and b in requirement
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