Question: Wembley Travel Agency Specializes in Ights Between Los An
Question: Wembley Travel Agency Specializes in Ights Between Los An
Question: Wembley Travel Agency Specializes in Ights Between Los An
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Wembley Travel Agency specializes in ights between Los Angeles and London. Enter question
Until last month, United paid Wembley a commission of 10% of the ticket price paid by each passenger. Continue to post
The commission was Wembley's only source of revenues. 20 questions remaining
Wembley's xed costs are $14,000 per month (for salaries, rent and so on) and its variable costs, such as commissions and bonu
Any ticket costing more than $500 generates only a $50 commission, regardless of the ticket price. 888-888-8888 Text
Wembley's managers are concerned about how United's new payment schedule will affect its break-even point and pro tability By providing your phone number, you agree to receiv
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Requirement 1: Under the old 10% commission structure, how many round-trip tickets must Wembley sell each month a) to bre
Requirement 2: How does United's revised payment schedule affect your answer to a) and b) in requirement 1? My Textbook Solutions
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Selling Price (900*10%) $ 90
Contribution $ 70
1.b Quantity of ticket to be sold for Target pro t ((14000+7000)/70) 300 Tickets
Contribution $ 30
2.b Quantity of ticket to be sold for Target pro t ((14000+7000)/30) 700 Tickets
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Q: Dana Travel Agency specialises in ights between Los Angeles and London. It books passengers on Virgin Airlines at
£900 per round-trip ticket. Until last month, Virgin paid Dana a commission of 10% of the ticket price paid by each
passenger. This commission was Dana’s only source of income. The agency expects to sell 500 tickets each month.
Dana’s xed costs are £14,000 per month...
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