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Question-4 Travel Agency specializes in flights between Toronto and Peru. It books passengers on Toronto Air. Norths fixed costs are $35,000 per month. Toronto Air
Question-4 Travel Agency specializes in flights between Toronto and Peru. It books passengers on Toronto Air. Norths 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 each 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. Norths variable costs are $37 per ticket. Toronto Air pays Sunset 7% commission on ticket price. 3. Norths variable costs are $53 per ticket. Toronto Air pays $68 fixed commission per ticket to North. Comment on the results. 4. Norths variable costs are $40 per ticket. It receives $60 commission per ticket from Toronto Air. It charges its customers a delivery fee of $5 per ticket. Comment on the results.
Question-4
Travel Agency specializes in flights between Toronto and Peru. It books passengers on Toronto Air. Norths 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 each 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. Norths variable costs are $37 per ticket. Toronto Air pays Sunset 7% commission on ticket price.
3. Norths variable costs are $53 per ticket. Toronto Air pays $68 fixed commission per ticket to North. Comment on the results.
4. Norths variable costs are $40 per ticket. It receives $60 commission per ticket from Toronto
Air. It charges its customers a delivery fee of $5 per ticket. Comment on the results.
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