Sunrise Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Burlington Air. Sunrise's fixed costs are $36,000 per month. Burlington Air charges passengers $1,300 per round-trip ticket. Read the requirement. DIVE number of units i Requirement = Fixed costs + Contribution margin per unit Next, select the formula to calculate the number of tickets needed to meet the target operating income. Quantity of units required to be sold = ( Target operating Income + Fixed costs ) + Contribution margin per unit Now complete the requirement for each of the cases. Begin with case 1. Case 1: Sunrise's variable costs are $34 per ticket. Burlington Air pays Sunrise 10% commission on ticket price. Calculate the number of tickets Sunrise must sell each month to (a) break even and (b) make a target operating income of $12,000 per month in each of the following independent cases. (Round up to the nearest whole number. For exarriple, 10.2 should be rounded up to 11.) 1. Sunrise's variable costs are $34 per ticket. Burlington Air pays Sunrise 10% corrimission on ticket price. 2. Sunrise's variable costs are $30 per ticket. Burlington Air pays Sunrise 10% commission on ticket price. 3. Sunrise's variable costs are $30 per ticket. Burlington Air pays S46 fixed corrimission per ticket to Sunrise. Comment on the results. 4. Sunrise's variable costs are $30 per ticket. It receives $48 commission per ticket from Burlington Air. It charges its customers a delivery fee of $8 per ticket. Comment on the results, Sunrise must sell 375 tickets to break even and tickets to meet the target operating income. Caso 2: Sunrise's variable costs are $30 per ticket. Burlington Air pays Sunrise 10% commission on ticket price. Sunrise must sell tickets to break even and tickets to meet the target operating income Case 3: Sunrise's variable costs are $30 per ticket. Burlington Air pays $46 fixed commission per ticket to Sunrise. Comment on the results. Print Done Sunrise must sell tickets to break even and tickets to meet the target operating income. When comparing Case 3 to Case 2, the commission sizably the breakeven point and the number of tickets required to yield a target operating income of $12,000. Case 4: Sunrise's variable costs are $30 per lickel. It receives $46 commission per ticket from Burlington Air. It charges ils customers a delivery fee of $6 per ticket Comment on the results. Sunrise must sell tickets to break even and tickets to meet the target operating income. When comparing Case 4 to Case 3, the $8 delivery fee results in a contribution margin which both the breakeven point and the number of tickets sold to attain operating income of $12,000. Choose from any list or enter any number in the input fields and then continue to the next question. Patel Motors is a small car dealership. On average, it sells a car for $26,000, which it purchases from the manufacturer for $22,000. Each month, Patel Motors pays $60.000 in rent and utilities and $70,000 for salespeople's salaries. In addition to their salaries, salespeople are paid a commission of $500 for each car they sell. Patel Motors also spends $10,000 each month for local advertisements. Its tax rate is 40%. Read the requirements. Requirement 1. How many cars must Patel Motors sell each month to break even? Let's begin by determining the formula for the breakeven number of cars. Breakeven number of cars = - Patel Motors must sell each month to break even. Requirement 2. Patel Motors has a target monthly net income of $63,000. What is its targeted monthly operating income? How many cars must be sold each month to reach the target monthly net income of $63,000? Determine the formula to calculate the target operating income. 0 Requirements Target ) = operating income The target monthly operating income is L . 1. How many cars must Patel Motors sell each month to break even? 2. Patel Motors has a target monthly net income of $63,000. What is its targeted monthly operating income? How many cars must be sold each month to reach the target monthly net income of $63,000? Finally determine the formula to calculate the number of cars that are required to be sold. Quantity of cars = required to be sold ) Print Done They would need to sell cars to reach the target monthly income of $63,000. Choose from any list or enter any number in the input fields and then continue to the next
