55. P&C Travel Agency specialize in flight between India and Malaysia. It books passengers on Malaysian Air. P&C fixed costs are Rs. 10,00,000 per month. Malaysian Air charges a passenger Rs. 20,000 per round trip ticket. Calculate the number of tickets P&C must sell each month to (a) breakeven and (b) make a target operating income of Rs. 4,00,000 per month in each of the following independent cases. a. P&C variable costs are Rs. 400 per ticket. Malaysian Air pays Chaturvedi AirBooking 10 per cent commission on ticket price. b. P&C variable costs are Rs. 200 per ticket. Malaysian Air pays P&C 10 per cent commission on ticket price. c. Chaturvedi AirBooking variable costs are Rs. 200 per ticket. Malaysian Air pays Rs. 500 fixed commission per ticket to Chaturvedi AirBooking. Comment on the results. d. Chaturvedi AirBooking variable costs are Rs. 200 per ticket. It receives Rs. 500 commission per ticket from Malaysian Air. It charges its customer a delivery fee of Rs. 50 per ticket. Comment on the results.
55. P&C Travel Agency specialize in flight between India and Malaysia. It books passengers on Malaysian Air. P&C fixed costs are Rs. 10,00,000 per month. Malaysian Air charges a passenger Rs. 20,000 per round trip ticket.
Calculate the number of tickets P&C must sell each month to (a) breakeven and (b) make a target operating income of Rs. 4,00,000 per month in each of the following independent cases.
a. P&C variable costs are Rs. 400 per ticket. Malaysian Air pays Chaturvedi AirBooking 10 per cent commission on ticket price.
b. P&C variable costs are Rs. 200 per ticket. Malaysian Air pays P&C 10 per cent commission on ticket price.
c. Chaturvedi AirBooking variable costs are Rs. 200 per ticket. Malaysian Air pays Rs. 500 fixed commission per ticket to Chaturvedi AirBooking. Comment on the results.
d. Chaturvedi AirBooking variable costs are Rs. 200 per ticket. It receives Rs. 500 commission per ticket from Malaysian Air. It charges its customer a delivery fee of Rs. 50 per ticket. Comment on the results.
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