Sunshine Travel Agency specialises in tour tickets between Perth and Fiji. It books passengers on Virgin Blue. Sunshine Travels fixed costs are $23 500 per month. Virgin Blue charges passengers $1 500 per round-trip ticket.

Required Calculate the number of tickets Sunshine Travel must sell each month to: (a) break even and (b) make a target profit of $10 000 per month in each of the following independent cases:

1. Sunshine Travels variable costs are $43 per ticket. Virgin Blue pays Sunshine Travel 6% commission on ticket price. (5 Marks)

2. Sunshine Travels variable costs are $40 per ticket. Virgin Blue pays Sunshine Travel 6% commission on ticket price. (5 Marks)

3. Sunshine Travels variable costs are $40 per ticket. Virgin Blue pays $60 fixed commission per ticket to Sunshine Travel. Comment on the results. (5 Marks)

4. Sunshine Travels variable costs are $40 per ticket. It receives $60 commission per ticket from Virgin Blue. It charges its customers a delivery fee of $5 per ticket. Comment on the results. (5 Marks)