Sunshine Tours is a travel agency specializ ing in cruises between Miami and Jamaica. It books passengers on Carib Cruises.
Sunshine's fixed costs are $22,000 per month.
Carib charges passengers $1,000 per round trip ticket.
REQUIRED:-
Calculate the number of tickets Sunshine must sell each month to
(a) Break even and
(b) Make a target operating income of $10,000 per month in each of the following independent cases.
1. Sunshine's variable costs are $35 PER TICKET AND CARIB CRUISES PAYS SUNSHINE 8% COMMISSION ON THE TICKET PRICE.
2. Sunshine's VARIABLE COSTS ARE $29 PER TICKET. Carib cruises PAYS sunshine 8% COMMISSION ON THE TICKET PRICE.
3. Sunshine's VARIABLE COSTS ARE $29 PER TICKET. It RECEIVES A $48 COMMISSION PER TICKET FROM carib cruises.
Comment ON THE RESULTS.
4. Sunshine's VARIABLE COSTS ARE $29 PER TICKET. It RECEIVES A $48 COMMISSION PER TICKET FROM carib cruises. It CHARGES CUSTOMERS A DELIVERY FEE OF $5 PER TICKET. Comment ON THE RESULTS