Starting with the next cruise, Health Cruises has been approached by the On-a-Whim Agency to act as travel agent and representative in booking the Health Cruise. On-a-Whim requires a 20% margin and Health Cruises fixed costs will remain the same due to on-going expenses and advertising.

a. How much revenue would Health Cruises receive from each customer?

[Hint – You must factor in the On-a-Whim margin.]

b. What is the new break even [show your Break Even calculations].

c. Would you recommend that Health Cruises hire On-a-Whim and why or why not?