Ruben intends to sell his customers a special round-trip airline ticket package.
ID: 2574851 • Letter: R
Question
Ruben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,000 in advertising costs. To break even, Ruben needs to sellRuben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,000 in advertising costs. To break even, Ruben needs to sell
Ruben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,000 in advertising costs. To break even, Ruben needs to sell
Explanation / Answer
Dear user thank you for using chegg CALCULATION OF BREAKEVEN POINT Particulars Amount Selling Price per unit $200 Variable Cost per unit $150 Contribution per unit $50 (Selling price per unit-Variable cost per unit) Fixed Cost $5000 BreakEven Point 100 (Fixed Cost/Contribution per unit) To breakeven, Rubin needs to sell 100 tickets.
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