Question: Bahamas Sunshine Tours is a travel agency specializing in cruises between Bahamas and Miami. It books passengers on Carib Cruises. Bahamas Sunshine's fixed costs are $22,000 per month. Carib charges passengers $1,000 per round trip ticket.

Required: Calculate the number of tickets Sunshine must sell each month to:

a. break even and graphically show the BEP

b. make a target operating income of $10,000 per month in each of the following independent cases:

1. Sunshine's variable costs are $35 per ticket and Carib Cruises pays Sunshine 8% commission on the ticket price

2. Sunshine's variable costs are $29 per ticket. Carib Cruises pays Sunshine 8% commission on the ticket price

3. Sunshine's variable costs are $29 per ticket. It receives a $48 commission per ticket from Carib Cruises. Comment on the results.

4. Sunshine's variable costs are $29 per ticket. It receives a $48 commission per ticket from Carib Cruises. It charges customers a delivery fee of $12 per ticket. The cost for Sunshine to deliver the ticket is $2 per ticket. Comment on the results.