Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 10,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? a. 29 packages b. 200 packages c. 50 packages d. 67 packages
Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 10,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? a. 29 packages b. 200 packages c. 50 packages d. 67 packages
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 10,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even?
a. 29 packages
b. 200 packages
c. 50 packages
d. 67 packages
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