Answer the Following Questions Using the Information Below

question 129

Multiple Choice

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.

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Definitions:

Manufacturer Profit

The financial gain a manufacturing company secures from its operations after deducting costs associated with production and distribution.

Short Term

A period of time that is immediate or not far in the future, usually less than a year, often used in reference to planning or financial strategies.

Product Availability

the extent to which a product is obtainable in the desired quantities at the right time and place for customers.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.