Question 3 30 marks Travel On Inc. sells luggage. They sell aduffle bag, a carry-on suitcase and a deluxe suitcase. The priceand variable cost for each type of luggage is listed below. PriceVariable Cost Duffle bag R100 R 25 Carry-on 180 40 Deluxe 300 120The total fixed costs for Travel On Inc. equals R60,000. For every8 duffle bags. Travel On Inc sells it sells 3 carry-on suitcasesand 1 deluxe suitcase. PBA4807 - Accounting for managers Page 15 of16 © UNISA Graduate School of Business Leadership Required: 1.)Calculate the package contribution margin. 2.) Calculate thebreak-even point in units for duffle bags, carry-on suitcases anddeluxe suitcases. 3.) If Travel On Inc. has a target income for thecoming year of R300,000, how many packages will the company have tosell? 4.) Based on your answer in Part C, prepare a contributionmargin income statement for the coming year. 5.) What is thecompany’s margin of safety in packages?
