Soleil Voyages SA is a travel agency specialising in flights between Paris and London. It books passengers on Air France. Air France charges passengers €1000 per round-trip ticket. Soleil Voyages receives a commission of 8% of the ticket price paid by the passenger. Soleil Voyages's fixed costs are €22 000 per month. Its variable costs are €35 per ticket, including an €18 delivery fee by Lièvre-Express SA. (Assume each ticket purchased is delivered in a separate package; thus the delivery fee applies to every individual ticket.)
Required
1 What is the number of tickets Soleil Voyages must sell each month to (a) break even, and (b) make a target operating profit of €10 000?
2 Assume Tortue-Express SA offers to charge Soleil Voyages only €12 per ticket delivered. How would accepting this offer affect your answers to (a) and (b) in requirement 1?