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Bright Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Georgetown Air. Brights fixe

Now complete the requirement for each of the cases. Begin with case 1. Case 1: Brights variable costs are $36 per ticket. Ge

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Answer #1

Formula

Break even number of units = total fixed costs/contribution margin per unit

Quantity of units = (desired operating income + fixed costs)/contribution margin per unit

1. Break even units =28500/(1100*6%-36) = 950 tickets

To meet operating income =(16000+28500)/30 =1483.33 tickets

2.break even =28500/(1100*6%-28) = 750

Target = 1171.05

3.break even = 1500

Target = 2342.11

Fixed commission increased the break even point

4.break even = 28500/(47+6-28)

=1140 tickets

Target = 1780

Increased contribution margin which reduces

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