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. Read the requirement. Begin by selecting the formula to calculate the breakeven points. Breakeven number of units = Fixed costs . Contribution margin per unit Next, select the formula to calculate the number of tickets needed to meet the target operating income. Quantity of units required to be sold = ( Fixed costs + Target operating income )= Contribution margin per unit Now complete the requirement for each of the cases. Begin with case 1. Case 1: Rainbow's variable costs are $40 per ticket. Edmonton Air pays Rainbow 10% commission on ticket price. Rainbow must sell 255 tickets to break even and 365 tickets to meet the target operating income. Case 2: Rainbow's variable costs are $38 per ticket. Edmonton Air pays Rainbow 10% commission on ticket price. Rainbow must sell tickets to break even and tickets to meet the target operating income