Question

Nam ТЫС. Аавьса. Аав No Spac Headings Heading 2 Paragraph O Question 1 (CVP analysis, changing revenues and costs) (25 Marks) Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Hamilton Air. Sunset's fixed costs are $23,500 per month. Hamilton Air charges passengers $1,500 per round-trip ticket. Calculate the number of tickets Sunset 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. I Required: 1. Sunset's variable costs are $43 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. 2. Sunset's variable costs are $40 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. 3. Sunset's variable costs are $40 per ticket. It receives $60 commission per ticket from Hamilton Air. It charges its customers a delivery fee of $5 per ticket. 1 Comment on the raculte English (United States foc ch DE

Answer 1

1. 
   ( Calculation o break Even Cost $43 pes ticket ticket. point and if sunset variable received 67. Commission on Commission C Revenue) (ox of 1500) (C) variable Cost- Contribution perunit $ 43 $47 4. Break Even Cén units] fined cost Contribution perunit $ 23,500 q ㅕ 2. 500- tickets $ 47 (6) Break even if target operating income is $10000 permonth Brreak even en whot 2 다 fixed cost & target profil contribution per unit 93 500 + 10000 $47 713 fort and often 7 No of uniti sold ticket
   
   if sunset is variable cost are $ 40 per ticket and secured commission of 61 on ticket Price Calculation of Break Even point. $90 Revenue (commission) Variable Contribution for ticket Cost $40 $ 50 al 93 500 Brealies even (in units) tickets) so 2 YAO fickets of units sold ager din be target operating someone of $10000 per month of units ticket sold y fixed cost & target profit contribution percent 23500 +10000 50 670 fickets
   
   Bunset variable cost Commission & 60 foem Customer per ticket $40 per ticket and received as from hamilton and 35 pesticides ) $ 65 total devenue ferticket I commission & Delivery charges) variable ticket cost per $ 40 Contribution unit $15 Break Even 2 fixed cost contributton per unit 93 500 15 1 (1567 ticket (b) ത of load ticket sold for achining target operating from 10000 2234 tickets no of 아 ticket sold 23500 + loroo 15
   
   when ever time break even point in units is in decimal. that we should always round the level of output up to next integer regardless of the decimal. main point of break even -analysis is to show the point at which we recovered all of Our costo round the level of output dowen then short of recovering of all cost. have