Question on breakeven sales

Assignment Help Managerial Accounting

Reference no: EM1347489

The following are the monthly fixed expenses for Peyton Travel:

Office rent: $1,000.00
Depreciation of office furniture 600.00
Utilities 250.00
Telephone 250.00
Reservation Service Fees 1,500.00
Travel Agent Salaries 1,500.00

Variable expenses include the following:

Travel Agent Commission 5.0% of sales
Advertising 6.0% of sales
Supplies and Postage 1.0% of sales
Telephone and Reservation Service usage fees 3.0% of sales

Use the contribution margin ratio CVP formula to compute Peyton Travel's break-even sales in dollars. If the average sales price of a ticket is $600.00; how many tickets must be sold to reach break-even?

Reference no: EM1347489

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