Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sunset Tours is a travel agency specializing in cruises between Miami and Jamaica. It books passengers on Chapelton Cruises. Sunset's fixed costs are $22,500 per

image text in transcribedimage text in transcribed

image text in transcribed
Sunset Tours is a travel agency specializing in cruises between Miami and Jamaica. It books passengers on Chapelton Cruises. Sunset's fixed costs are $22,500 per month. Chapelton charges passengers $1,100 per ticket. Required Begin by selecting the formula to calculate the breakeven points. Breakeven number of units Next, select the formula to calculate the number of tickets needed to meet the target operating income. Quantity of units required to be sold = Now complete the requirement for each of the cases. Begin with Case 1, Case 1: Sunset's variable costs are $34 per ticket, and Chapelton Cruises pays Sunset 8% commission on the ticket price. (Round your answers up to the nearest whole number.) Sunset must sell tickets to break even and tickets to meet the target operating income. Case 2: Sunset's variable costs are $25 per ticket. Chapelton Cruises pays Sunset 8% commission on the ticket price. (Round your answers up to the nearest whole number.) Sunset must sell tickets to break even and tickets to meet the target operating income. Case 3: Sunset's variable costs are $25 per ticket. It receives a $49 commission per ticket from Chapelton Cruises. Comment on the results. (Round your answers up to the nearest whole number.) Sunset must sell | tickets to break even and tickets to meet the target operating income. When comparing Case 3 to Case 2, the V commission sizably the breakeven point and the number of tickets required to yield a target operating income of $9,500. Case 4: Sunset's variable costs are $25 per ticket. It receives a $49 commission ticket from Chapelton Cruises. It charges customers a delivery fee of $8 per ticket. The cost for Sunset to deliver the ticket is $2 per ticket. Comment on the results. (Round your answers up to the nearest whole number.) Sunset must sell tickets 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 V both the breakeven point and the number of tickets sold to attain operating income of $9,500. Choose from any drop-down list and then continue to the next q higher lower die charg A Required cin Calculate the number of tickets Sunset must sell each month to (a) break even and (b) make a target operating income of $9,500 per month in each of the following independent cases. 1. Sunset's variable costs are $34 per ticket, and Chapelton Cruises pays Sunset 8% commission on the ticket price. 2. Sunset's variable costs are $25 per ticket. Chapelton Cruises pays Sunset 8% commission on the ticket price. 3. Sunset's variable costs are $25 per ticket. It receives a $49 commission per ticket from Chapelton Cruises. Comment on the results. 4. Sunset's variable costs are $25 per ticket. It receives a $49 commission per ticket from Chapelton Cruises. It charges customers a delivery fee of $8 per ticket. The cost for Sunset to deliver the ticket is $2 per ticket. Comment on the results. ni Print Done fr e nu

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Describe the patterns of business communication.

Answered: 1 week ago

Question

3. Provide two explanations for the effects of mass media

Answered: 1 week ago