(Answered) Sunshine tours is a travel agency specializ ing in cruises

Accounting

Sunshine Tours is a travel agency specializ ing in cruises between Miami and Jamaica. It books passengers on Carib Cruises.

Sunshine's fixed costs are $22,000 per month.

Carib charges passengers $1,000 per round trip ticket.

REQUIRED:-

Calculate the number of tickets Sunshine must sell each month to

(a) Break even and

(b) Make a target operating income of $10,000 per month in each of the following independent cases.

1. Sunshine's variable costs are $35 PER TICKET AND CARIB CRUISES PAYS SUNSHINE 8% COMMISSION ON THE TICKET PRICE.

2. Sunshine's VARIABLE COSTS ARE $29 PER TICKET. Carib cruises PAYS sunshine 8% COMMISSION ON THE TICKET PRICE.

3. Sunshine's VARIABLE COSTS ARE $29 PER TICKET. It RECEIVES A $48 COMMISSION PER TICKET FROM carib cruises.

Comment ON THE RESULTS.

4. Sunshine's VARIABLE COSTS ARE $29 PER TICKET. It RECEIVES A $48 COMMISSION PER TICKET FROM carib cruises. It CHARGES CUSTOMERS A DELIVERY FEE OF $5 PER TICKET. Comment ON THE RESULTS

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91899474
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