CVP analysis, changing revenues and costs. Sunny Spot Travel Agency specializes in flights between Toronto...
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CVP analysis, changing revenues and costs. Sunny Spot Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Canadian Air. Sunny Spot's fixed costs are $23,500 per month. Canadian Air charges passengers $1,500 per round-trip ticket. Calculate the number of tickets Sunny Spot must sell each month to (a) break even and (b) make a target operating income of SI 7,000 per month in each of the following independent cases. Sunny Spot's variable costs are $43 per ticket. Canadian Air pays Sunny Spot 6% commission on ticket price. Sunny Spot's variable costs are $40 per ticket. Canadian Air pays Sunny Spot 6% commission on ticket price. Sunny Spot's variable costs are $40 per ticket. Canadian Air pays $60 fixed commission per ticket to Sunny Spot. Comment on the results. Sunny Spot's variable costs are $40 per ticket. It receives $60 commission per ticket from Canadian Air. It charges its customers a delivery fee of $5 per ticket Comment on the results
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