WSM Corporation is considering offering an air shuttle service between Sao Paulo and Rio de Janeiro. It plans to offer four flights every day (excluding certain holidays) for a total of 1,400 flights per year ( = 350 days 4 flights per day). WSM has hired a consultant to determine activity-based costs for this operation. The consultants report shows the following :

Activity	Activity Measure (cost driver)	Unit Cost (cost per unit of activity)
Flying and maintaining aircraft	Number of flights	$	1,100 per flight
Serving passengers	Number of passengers	$	3 per passenger
Advertising and marketing	Number of promotions	$	46,000 perpromotion

WSM estimates the following annual information. With 10 advertising promotions, it will be able to generate demand for 40 passengers per flight at a fare of $180. The lease of the 60-seat aircraft will cost $3,200,000. Other equipment costs will be $1,600,000. Administrative and other marketing costs will be $900,000.

Assume that WSM management decides not to adopt the Internet strategy. Instead, it is now considering a plan to sell tickets at two prices. An unrestricted ticket (good for travel at any time on any day) would sell for $ 205.A discountticket, good for reservations made in advance, would sell for $105. Management estimates that it can sell 35,000 tickets (25 per flight) at the unrestricted airfare of $205. All other data remain the same.

How manydiscounted ticketswould WSM have to sell annually to earn operating income of $1,512,000? Assume that the annual number of flights remains at 1,400 and that the discounted tickets would be evenly divided across the 1,400 flights.