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Question - Brilliant Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Ontario Air. Brilliant's fixed costs are $36,000 per month. Ontario Air charges passengers $1,300 per round-trip ticket.
Calculate the number of tickets Brilliant must sell each month to (a) break even and (b) make a target operating income of $12,000 per month in each of the following independent cases.
a. Brilliant's variable costs are $34 per ticket. Ontario Air pays Brilliant 10% commission on ticket price.
b. Brilliant's variable costs are $30 per ticket. Ontario Air pays Brilliant 10% commission on ticket price.
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