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Sunny Tours is a travel agency specializing in cruises between Miami and Jamaica. It books passengers on Chapelto Cruises. Sunny's fixed costs are $22,500 per
Sunny Tours is a travel agency specializing in cruises between Miami and Jamaica. It books passengers on Chapelto Cruises. Sunny's fixed costs are $22,500 per month. Chapelton charges passengers $850 per round trip ticket. Required A. Breakeven number of units = Fixed costs Contribution margin per unit B. Breakeven number of units = Total costs Variable cost per unit C. Breakeven number of units = Fixed costs Variable cost per unit D. Breakeven number of units = Total costs Contribution margin per unit Next, select the formula to calculate the number of tickets needed to meet the target operating income. Choose the correct answer below. A. Quantity of units required to be sold =( Fixed costs + Target operating income ) Contribution margin per unit B. Quantity of units required to be sold =( Total costs + Target operating income ) Contribution margin per unit C. Quantity of units required to be sold =( Total costs + Target operating income ) Variable cost per unit D. Quantity of units required to be sold =( Fixed costs + Target operating income ) Variable cost per unit Now, complete the requirement for each of the cases. Begin with Case 1. Case 1: Sunny's variable costs are $39 per ticket, and Chapelton Cruises pays Sunny 10% commission on the ticket price. (Round your answers up to the nearest whole number.) Sunny must sell tickets to break even and tickets to meet the target operating income. Required Calculate the number of tickets Sunny must sell each month to (a) break even and (b) make a target operating income of $11,000 per month in each of the following independent cases. 1. Sunny's variable costs are $39 per ticket, and Chapelton Cruises pays Sunny 10% commission on the ticket price. 2. Sunny's variable costs are $26 per ticket. Chapelton Cruises pays Sunny 10% commission on the ticket price. 3. Sunny's variable costs are $26 per ticket. It receives a $53 commission per ticket from Chapelton Cruises. Comment on the results. 4. Sunny's variable costs are $26 per ticket. It receives a $53 commission per ticket from Chapelton Cruises. It charges customers a delivery fee of $14 per ticket. The cost for Sunny to deliver the ticket is $1 per ticket. Comment on the results
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