Mary is a travel agent. She intends to sell her customers a special round-trip airline ticket package. She is able to purchase the package from the airline carrier for $170 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Mary for any unsold ticket packages. Fixed costs include $5,140 in advertising costs. For every 135 round-trip airline ticket package sold, operating income will increase by A) $34,000 B) $27,000 C) $4,050 D) $22,950
Mary is a travel agent. She intends to sell her customers a special round-trip airline ticket package. She is able to purchase the package from the airline carrier for $170 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Mary for any unsold ticket packages. Fixed costs include $5,140 in advertising costs. For every 135 round-trip airline ticket package sold, operating income will increase by A) $34,000 B) $27,000 C) $4,050 D) $22,950
Chapter16: Tax Research
Section: Chapter Questions
Problem 64DNC
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Question
Opereting income will increase by ??
Transcribed Image Text:Mary is a travel agent. She intends to sell her customers
a special round-trip airline ticket package. She is able to
purchase the package from the airline carrier for $170
each. The round-trip tickets will be sold for $200 each
and the airline intends to reimburse Mary for any unsold
ticket packages. Fixed costs include $5,140 in advertising
costs. For every 135 round-trip airline ticket package
sold, operating income will increase by
A) $34,000
B) $27,000
C) $4,050
D) $22,950
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