Golden Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Georgetown...
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Golden Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Georgetown Air. Golden's fixed costs are $25,500 per month. Georgetown 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 Next, select the formula to calculate the number of tickets needed to meet the target operating income. Quantity of units required to be sold =( Now complete the requirement for each of the cases. Begin with case 1. Case 1: Golden's variable costs are $44 per ticket. Georgetown Air pays Golden 6% commission on ticket price. Golden must sell tickets to break even and tickets to meet the target operating income. Case 2: Golden's variable costs are $28 per ticket. Georgetown Air pays Golden 6% commission on ticket price. Golden must sell tickets to break even and tickets to meet the target operating income. Golden Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Georgetown Air. Golden's fixed costs are $25,500 per month. Georgetown Air charges passengers $1,300 per round-trip ticket. Read the requirement. Case 1: Golden's variable costs are $44 per ticket. Georgetown Air pays Golden 6% commission on ticket| icket price Golden must sell tickets to break even and tickets to meet the target operating income. Case 2: Golden's variable costs are $28 per ticket. Georgetown Air pays Golden 6% commission on ticket price. Golden must sell tickets to break even and tickets to meet the target operating income. Case 3: Golden's variable costs are $28 per ticket. Georgetown Air pays $48 fixed commission per ticket to Golden. Comment on the results. Golden must sell tickets to break even and tickets to meet the target operating income. When comparing Case 3 to Case 2, the V commission sizably v the breakeven point and the number of tickets required to yield a target operating income of $15,000. Case 4: Golden's variable costs are $28 per ticket. It receives $48 commission per ticket from Georgetown Air. It charges its customers a delivery fee of $10 per ticket. Comment on the results. Golden must sell tickets to break even and tickets to meet the target operating income. contribution margin which V both the breakeven point and the number of tickets sold to attain operating income of When comparing Case 4 to Case 3, the $10 delivery fee results in a $15,000. Requirement Calculate the number of tickets Golden must sell each month to (a) break even and (b) make a target operating income of $15,000 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. Golden's variable costs are $44 per ticket. Georgetown Air pays Golden 6% commission on ticket price. 2. Golden's variable costs are $28 per ticket. Georgetown Air pays Golden 6% commission on ticket price. 3. Golden's variable costs are $28 per ticket. Georgetown Air pays $48 fixed commission per ticket to Golden. Comment on the results. 4. Golden's variable costs are $28 per ticket. It receives $48 commission per ticket from Georgetown Air. It charges its customers a delivery fee of $10 per ticket. Comment on the results. Print Done
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