Question
SunsetSunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on HamiltonHamilton Air. SunsetSunset's fixed costs are $ 23,500 per month. HamiltonHamilton
SunsetSunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on HamiltonHamilton Air. SunsetSunset's fixed costs are $ 23,500 per month. HamiltonHamilton Air charges passengers $ 1500 per round-trip ticket.
Calculate the number of tickets
SunsetSunset
must sell each month to (a) break even and(b) make a target operating income of
$ 10 comma 000$10,000
per month in each of the following independent cases. (Round up to the nearest whole number. For example, 10.2 should be rounded up to 11.)
1. | SunsetSunset's variable costs are$ 43 per ticket.HamiltonHamilton Air paysSunsetSunset 66% commission on ticket price. |
2. | SunsetSunset's variable costs are$ 40 per ticket.HamiltonHamilton Air paysSunsetSunset 66% commission on ticket price. |
3. | SunsetSunset's variable costs are$ 40 per ticket.HamiltonHamilton Air pays$ 60 fixed commission per ticket toSunsetSunset. Comment on the results. |
4. | SunsetSunset's variable costs are$ 40 per ticket. It receives$ 60 commission per ticket fromHamiltonHamilton Air. It charges its customers a delivery fee of$ 5 per ticket. Comment on the results. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started