Question-4 Travel Agency specializes in flights between Toronto and Peru. It books passengers on Toronto Air. North's fixed costs are $35,000 per month. Toronto Air charges passengers $1,700 per round-trip ticket Calculate the number of tickets North Travel must sell cach month to (a) break even and (b) make a target operating income of $17,000 per month in each of the following independent cases. Required: 1. Norths variable costs are $33 per ticket. Toronto Air pays Sunset 5% commission on ticket price. 2. North's variable costs are $37 per ticket. Toronto Air pays Sunset 7% commission on ticket price 3. North's variable costs are $53 per ticket. Toronto Air pays $68 fixed commission per ticket to North. Comment on the results. 4. North's variable costs are $40 per ticket. It receives $60 commission per ticket from Toronto I ent Air Ii charges its customers a delivery foc of S5 per ticket. Comment on the results. Question-5 The Sunshine Company manufactures and sells pens. Currently, 6,000,000 units are sold per year at $0.70 per unit. Fixed costs are $980,000 per year. Variable costs are $0.30 per unit. Consider cach case separately: Required: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.03 per unit increase in variable costs 3. A 12% increase in fixed costs and a 10% increase in units sold 4. A 18% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold Tompute the new breakeven point in units for each of the following changes: 4. A 10% increase in fixed costs 5. A 10% increase in selling price and a $20,000 increase in fixed costs