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QUESTION 2 [25 POINTS] Peter Parker owns a sports brokerage agency and sells tickets to major league baseball, football, and basketball games. He also
QUESTION 2 [25 POINTS] Peter Parker owns a sports brokerage agency and sells tickets to major league baseball, football, and basketball games. He also sells sports travel packages that include game tickets, airline tickets, and hotel accommodations. Revenues are commissions based as follows: Game ticket sales Airline ticket sales 8% commission 10% commission Hotel bookings sales 20% commission Monthly fixed costs include the following items: Advertising Rent $1,100 $900 Utilities Other costs $250 $2,200 There are no variable costs. A typical month generates the following sales amounts that are subject to the stated commission structure: Game tickets Airline tickets Hotel bookings $30,000 $4,500 $7,000
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