Rainbow Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Ontario Air. Rainbow's fixed costs are $$21,000$ per month. Ontario Air charges passengers $$1,200$ per round$-$trip ticket.

Read the requirement.

Begin by selecting the formula to calculate the breakeven pointsNext, select the formula to calculate the number of tickets needed to meet the target operating income.Quantity of unitsrequired to be sold $=($quad Fixed costs $+$ Target operating income $)+$ Contribution margin per unitNow complete the requirement for each of the cases. Begin with case $1.$Case $1$: Rainbow's variable costs are $$36$ per ticket Ontario Air pays Rainbow $8\%$ commission on ticket priceRainbow must sell$350$ tickets to break even and tickets to meet the target operating income.

Requirement

Calculate the number of tickets Rainbow must sell each month to $($a$)$ break even and $($b$)$ make a target operating income of $$11,000$ per month in each of the following independent cases. $($Round up to the nearest whole number For example, $10\mathrm{.}2$ should be rounded up to $11.)$

Rainbow's variable costs are $$36$ per ticket Ontario Air pays Rainbow $8\%$ commission on ticket price.

Rainbow's variable costs are $$26$ per ticket Ontario Air pays Rainbow $8\%$ commission on ticket price.

Rainbow's variable costs are $$26$ per ticket Ontario Air pays $$46$ fixed commission per ticket to Rainbow Comment on the results.

Rainbow's variable costs are $$26$ per ticket It receives $$46$ commission per ticket from Ontario Air. It charges its customers a delivery fee of $$4$ per ticket

Comment on the results.

Done