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Sunshine Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Vancouver Air. Sunshine's fixed costs are $25,500 per month. Vancouver Air

Sunshine Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Vancouver Air. Sunshine's fixed costs are $25,500 per month. Vancouver Air charges passengers $1,300 per round-trip ticket. Read the requirement. Begin by selecting the formula to calculate the breakeven points. Breakeven number of units = 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 = ( Fixed costs + Target operating income ) Contribution margin per unit Now complete the requirement for each of the cases. Begin with case 1. Case 1: Sunshine's variable costs are $44 per ticket. Vancouver Air pays Sunshine 6% commission on ticket price. Sunshine must sell tickets to break even and tickets to meet the target operating income. Requirement Calculate the number of tickets Sunshine must sell each month to (a) break even and (b) make a target operating income of $17,000 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. Sunshine's variable costs are $44 per ticket. Vancouver Air pays Sunshine 6% commission on ticket price. 2. Sunshine's variable costs are $28 per ticket. Vancouver Air pays Sunshine 6% commission on ticket price. 3. Sunshine's variable costs are $28 per ticket. Vancouver Air pays $48 fixed commission per ticket to Sunshine. Comment on the results. 4. Sunshine's variable costs are $28 per ticket. It receives $48 commission per ticket from Vancouver Air. It charges its customers a delivery fee of $10 per ticket. Comment on the results. Print Done

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