Answer:
Explanation:
Break even point=fixed cost/ contribution margin per unit
Units to be sold to get target operating income=(fixed costs+ target operating income)/contribution margin per unit
1. Revenue=10%×1600=$160 per ticket
Contribution per ticket=$100-$42=$58 per ticket.
Fixed cost=$29,500
Break even units:$29,500/$58=508.6 tickets
Units to be sold to get target operating income:(29500+$12000)/$58=715.5 tickets
2. Revenue=10%×1600=$160 per ticket
Contribution per ticket=$100-$35=$65 per ticket.
Fixed cost=$29,500
Break even units:$29,500/$65=453.8 tickets
Units to be sold to get target operatig income:(29500+$12000)/$65=638 tickets
3.
Revenue=$50 per ticket
Contribution per ticket=$50-$35=$15 per ticket.
Fixed cost=$29,500
Break even units:$29,500/$15=1966 tickets
Units to be sold to get target operating income:(29,500+$12,000)/$15=2766 tickets
4.
Revenue:$55(fixed comission fee)+$5(delivery fee)=$60 per ticket
Contribution per ticket=$60-$35=$25 per ticket.
Fixed cost=$29,500
Break even units:$29,500/$25=1180 tickets
Units to be sold to get target operating income:(29,500+$12,000)/$25=1,660 tickets
