Answer the following questions using the information below:
Campesi intends to sell his customers a special round-trip airline ticket package.He is able to purchase the package from the airline carrier for $250 each.The round-trip tickets will be sold for $300 each and the airline intends to reimburse Campesi for any unsold ticket packages.Fixed costs include $7500 in advertising costs.
-For every $28 500 of ticket packages sold,operating profit will increase by:
A)$4750.
B)$10 500.
C)$15 750.
D)an indeterminable amount.

Question

Quizplus · Accepted Answer

The operating profit increase can be calculated as follows: For each ticket package sold at $300, Campesi makes a profit of $50 ($300 - $250). To find out how many tickets correspond to $28,500 in sales, divide $28,500 by the selling price per ticket ($300), which equals 95 tickets. The profit per ticket is $50, so for 95 tickets, the total profit is $50 * 95 = $4,750. Fixed costs are not considered in the calculation of operating profit per additional ticket sold, as they remain constant regardless of the number of tickets sold.

Answer the Following Questions Using the Information Below