Example 5 Brilliant Travel Agency specializes in flights between Toronto and Jamaica. It bookspassengers on Ontario Air. Brilliant's fixed costs are $36,000 per month. Ontario Air chargespassengers $1,300 per round-trip ticket.Required:Under each of the following independent situation. Calculate the number of tickets Brilliantmust sell each month to (a) break even and (b) make a target operating income of $12,000per month1.Brilliant's variable costs are $34 per ticket. Ontario Air pays Brilliant 10% commission on ticketprice.2.Brilliant's variable costs are $30 per ticket. Ontario Air pays Brilliant 10% commission on ticketprice.3.Brilliant's variable costs are $30 per ticket. Ontario Air pays $46 fixed commission per ticket toBrilliant. Comment on the results.4.Brilliant's variable costs are $30 per ticket. It receives $46 commission per ticket from OntarioAir. It charges its customers a delivery fee of $8 per ticket. Comment on the results.Solutions:

Contribution margin refers to the sum value of money or revenue that remained at a company after…

Answered: Brilliant Travel Agency specializes ir…

Brilliant Travel Agency specializes ir on Ontario Air. Brilliant’s fixed cost 51,300 per round-trip ticket. of the following independent situati uch month to (a) break even and (b)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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