Reference no: EM132956108
Question - PT. Toba Travel is a travel agency that specializes in flights between the islands of Nias - Medan. This agent provides Merpati Air Liners rates for return flights of Rp. 1,800,000. As of this month, Merpati AirLines has paid the agent a commission of 10% of the per-passenger ticket price, which is the only source of income. The monthly fixed cost borne by this agent is Rp. 18,000,000 (to pay for salaries, rent and others), while the variable cost per unit is Rp. 40,000 per ticket. Merpati Airlines this month made a revision to present commissions to all travel agents, where the commission will be given as much as 10% per ticket up to a maximum of Rp. 100,000 whichever is higher. For each ticket with a price of more than Rp. 1,000,000, Merpati Airlines will only pay a commission of Rp. 100,000 regardless of the ticket price. Tax on income 30%.
Based on the data above, calculate the structure that presented the old commission,.
How many round-trip tickets the sales agent must sell to reach
A. Break-even point (BEP)
B. 12,000,000 operating profit per month
C. What do you know about target profits, and what are the implications for the business world?
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