Sunshine Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Hamilton Air. Sunshine's fixed costs are $28,500 per month. Hamilton Air charges passengers $1,100 per round-trip ticket. Read the requirement. 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 = ( C + D Now complete the requirement for each of the cases. Begin with case 1. Case 1: Sunshine's variable costs are $36 per ticket. Hamilton Air pays Sunshine 6% commission on ticket price. Sunshine must sell tickets to break even and tickets to meet the target operating income. Case 2: Sunshine's variable costs are $28 per ticket. Hamilton Air pays Sunshine 6% commission on ticket price. Sunshine must sell tickets to break even and tickets to meet the target operating income. Case 3: Sunshine's variable costs are $28 per ticket. Hamilton Air pays $47 fixed commission per ticket to Sunshine. Comment on the results. Sunshine must sell tickets to break even and fick tickets to meet the target operating income. commission sizably the breakeven point and the number of tickets required to yield a target When comparing Case 3 to Case 2, the operating income of $11,000. Case 4: Sunshine's variable costs are $28 per ticket. It receives $47 commission per ticket from Hamilton Air. It charges its customers a delivery fee of $6 per ticket. Comment on the results. Sunshine must sell tickets to break even and tickets to meet the target operating income. contribution margin which both the breakeven point and the number of When comparing Case 4 to Case 3, the $6 delivery fee results in a tickets sold to attain operating income of $11,000