Rainbow Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Edmonton Air. Rainbow's fixed costs are $25,500 per month. Edmonton Air charges passengers $1,400 per round trip ticket.

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, 10.2 should be rounded up to 11.) 1. Rainbow's variable costs are $40 per ticket. Edmonton Air pays Rainbow 10% commission on ticket price. 2. Rainbow's variable costs are $38 per ticket. Edmonton Air pays Rainbow 10% commission on ticket price. 3. Rainbow's variable costs are $38 per ticket. Edmonton Air pays $55 fixed commission per ticket to Rainbow. Comment on the results. 4. Rainbow's variable costs are $38 per ticket. It receives $55 commission per ticket from Edmonton Air. It charges its customers a delivery fee of $8 per ticket. Comment on the results. Print Done