# Question: Brilliant Travel Agency specializes in flights between Toronto and Jamaica

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
(b) Make a target operating income of \$ 12,000 target operating income of \$12,000 per month in each of the following independent cases.

Required
1. Brilliant’s variable costs are \$ 34 per ticket. Ontario Air pays Brilliant 10% commission on ticket price.
2. Brilliant’s variable costs are \$ 30 per ticket. Ontario Air pays Brilliant 10% commission on ticket price.
3. Brilliant’s variable costs are \$ 30 per ticket. Ontario Air pays \$ 46 fixed commission per ticket to Brilliant. Comment on the results.
4. Brilliant’s variable costs are \$ 30 per ticket. It receives \$ 46 commission per ticket from Ontario Air. It charges its customers a delivery fee of \$ 8 per ticket. Comment on the results.

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