B& Co. sells tickets to tourists for sight visit that is arranged by a travel agency. Sight visit includes city (Delhi) tour, and tour to Agra for visiting Taj Mahal and other historical places. The luxury coach starts from Delhi from a central pickup point in the morning and comes back in night. The average price per ticket is Rs 9,000. B& Co. gets a commission of 10 per cent on the ticket price. It incurs a variable cost of Rs 150 per passenger for taking the passengers to the pick-up point and dropping them back to the hotel/residence. The fixed cost is Rs 1,40,000 per month. Required: (a)Calculate the Break-Even-Point (BEP) per month; and (b) How many tickets to be sold per month to earn an operating profit of Rs 70,000 per month. Show your calculations.
B& Co. sells tickets to tourists for sight visit that is arranged by a travel agency. Sight visit includes city (Delhi) tour, and tour to Agra for visiting Taj Mahal and other historical places. The luxury coach starts from Delhi from a central pickup point in the morning and comes back in night. The average price per ticket is Rs 9,000. B& Co. gets a commission of 10 per cent on the ticket price. It incurs a variable cost of Rs 150 per passenger for taking the passengers to the pick-up point and dropping them back to the hotel/residence. The fixed cost is Rs 1,40,000 per month.
Required:
(a)Calculate the Break-Even-Point (BEP) per month; and (b) How many tickets to be sold per month to earn an operating profit of Rs 70,000 per month.
Show your calculations.
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