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.

---

Definitions:

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments.

State And Local Governments

The subdivisions of the federal government with their own specific powers and responsibilities, managing local affairs and providing public services.

Higher Interest Rate

An increased cost of borrowing money reflected in the percentage charged on the principal amount by lenders to borrowers.

Financially Shaky Corporations

Companies that are experiencing financial instability or distress, potentially leading to increased risk for investors and creditors.