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SECTION B: Case Study B (Total: 20 Marks) Background and Content: Sunshine Travel Agency specialises in tour tickets between Perth and Fiji. It books passengers
SECTION B: Case Study B (Total: 20 Marks) Background and Content: Sunshine Travel Agency specialises in tour tickets between Perth and Fiji. It books passengers on Virgin Blue. Sunshine Travel's fixed costs are $23 500 per month. Virgin Blue charges passengers $1 500 per round-trip ticket. Required Calculate the number of tickets Sunshine Travel must sell each month to: (a) break even and (b) make a target profit of $10 000 per month in each of the following independent cases: 1. Sunshine Travel's variable costs are $43 per ticket. Virgin Blue pays Sunshine Travel 6% commission on ticket price. (5 Marks) 2. Sunshine Travel's variable costs are $40 per ticket. Virgin Blue pays Sunshine Travel 6% commission on ticket price. (5 Marks) 3. Sunshine Travel's variable costs are $40 per ticket. Virgin Blue pays $60 fixed commission per ticket to Sunshine Travel. Comment on the results. (5 Marks) 4. Sunshine Travel's variable costs are $40 per ticket. It receives $60 commission per ticket from Virgin Blue. It charges its customers a delivery fee of $5 per ticket. Comment on the results
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