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Answer the Following Questions Using the Information Below

Question 24

Multiple Choice

Answer the following questions using the information below:
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.
-How many ticket packages will Ruben need to sell in order to achieve $60,000 of operating income?


A) 367 packages
B) 434 packages
C) 1,100 packages
D) 1,300 packages

Correct Answer:

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