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Calculate the number of tickets cox and kings must sell

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Reference no: EM132548259

Cox and Kings Travel Agency specializes in flight between India and Malaysia. It books passengers on Malaysian Air. Cox and Kings fixed costs are Rs 10,00,000 per month. Malaysian Air charges passenger Rs 20,000 per round trip ticket.

Questions

Problem (a) Calculate the number of tickets Cox and Kings must sell each month to (a) break-even and (b) make a target operating income of Rs 4,00,000 per month in each of the following independent cases.

i. Cox and Kings variable costs are Rs 400 per ticket. Malaysian Air pays Cox and Kings 10 per cent commission on ticket price.

ii. Cox and Kings variable costs are Rs 200 per ticket. Malaysian Air pays Cox and Kings 10 per cent commission on ticket price.

iii. Cox and Kings variable costs are Rs 200 per ticket. Malaysian Air pays

Rs 500 fixed commission per ticket to Cox and Kings. Comment on the results.

iv. Cox and Kings variable costs are Rs 200 per ticket. It receives Rs 500 commission per ticket from Malaysian Air. It charges its customer a delivery fee of Rs 50 per ticket. Comment on the results.

Reference no: EM132548259

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