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Sparkle Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Bolton Air. Sparkle's fixed costs are $25,500 per month. Bolton Air
Sparkle Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Bolton Air. Sparkle's fixed costs are $25,500 per month. Bolton Air charges passengers $1,300 per round-trip ticket. Read the requirement. Begin by selecting the formula to ca Requirement Breakeven number of units- Calculate the number of tickets Sparkle must sell each month to (a) break even and (b) make a target operating income of $18,000 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. Bolton Air pays Sparkle 6% Next, select the formula to calculate Quantity of units required to be sold Now complete the requirement for e Case 1: Sparkle's variable costs are3. Sparkle's variable costs are $28 per ticket. Bolton Air pays $48 fixed Sparkle must sell Case 2: Sparkle's variable costs are Sparkle must sell Case 3: Sparkle's variable costs are Sparkle must sell commission on ticket price Sparkle's variable costs are $28 per ticket. Bolton Air pays Sparkle 6% commission on ticket price 2. commission per ticket to Sparkle. Comment on the results 75 tic 4. Sparkle's variable costs are $28 per ticket. It receives $48 commission per ticket from Bolton Air. It charges its customers a delivery fee of $10 per ticket. Comment on the results 510 t Print Done ults tickets to break even and tickets to meet the target operating income Now complete the requirement for each of the cases. Begin with case1 Case 1: Sparkle's variable costs are $44 per ticket. Bolton Air pays Sparkle 6% commission on ticket price Sparkle must sell Case 2: Sparkle's variable costs are $28 per ticket. Bolton Air pays Sparkle 6% commission on ticket price Sparkle must sell Case 3: Sparkle's variable costs are $28 per ticket. Bolton Air pays $48 fixed commission per ticket to Sparkle. Comment on the results Sparkle must sell When comparing Case 3 to Case 2, the operating income of $18,000 Case 4: Sparkle's variable costs are $28 per ticket. It receives $48 commission per ticket from Bolton Air. It charges its customers a delivery fee of $10 per ticket. 75 tickets to break even and 1280 tickets to meet the target operating income 510 tickets to break even and 870 tickets to meet the target operating income tickets to break even and tickets to meet the target operating income commission sizably Vthe breakeven point and the number of tickets required to yield a target Comment on the results Sparkle must sell When comparing Case 4 to Case 3, the $10 delivery fee results in a tickets to break even and tickets to meet the target operating income V contribution margin which Vboth the breakeven point and the number of ickets sold to attain operating income of $18,000 hoose from any list or enter any number in the input fields and then continue to the next
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