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.