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Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Georgetown Air. Sunset's fixed costs are $27,000 per month. Georgetown Air
Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Georgetown Air. Sunset's fixed costs are $27,000 per month. Georgetown Air charges passengers $1,000 per round-trip ticket. Read the requirement. Begin by selecting the formula to calculate the breakeven points. Breakeven Requirement number of units = Calculate the number of tickets Sunset must sell each month to (a) break even and (b) make a target operating income of $14.000 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. Sunset's variable costs are $30 per ticket. Georgetown Air pays Sunset 8% commission on ticket price. 2. Sunset's variable costs are $26 per ticket. Georgetown Air pays Sunset 8% commission on ticket price. 3. Sunset's variable costs are $26 per ticket. Georgetown Air pays $50 fixed commission per ticket to Sunset. Comment on the results. 4. Sunset's variable costs are $26 per ticket. It receives $50 commission per ticket from Georgetown Air. It charges its customers a delivery fee of $6 per ticket. Comment on the results. Print Done
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