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Sparkle Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Milton Air. Sparkle's fixed costs are $25,500 per month. Milton Air
Sparkle Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Milton Air. Sparkle's fixed costs are $25,500 per month. Milton Air charges passengers $1,300 per round-trip ticket. Read the requirement. Begin by selecting the formula to calculate the breakeven points. Breakeven number of units Fixed costs Requirement Calculate the number of tickets Sparkle must sell each month to (a) break even and (b) make a target operating income of $16,000 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. Sparkle's variable costs are $44 per ticket. Milton Air pays Sparkle 6% commission on ticket price. 2. Sparkle's variable costs are $28 per ticket. Milton Air pays Sparkle 6% commission on ticket price. 3. Sparkle's variable costs are $28 per ticket. Milton Air pays $48 fixed commission per ticket to Sparkle. Comment on the results. 4. Sparkle's variable costs are $28 per ticket. It receives $48 commission per ticket from Milton Air. It charges its customers a delivery fee of $10 per ticket. Comment on the results. Print Done
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