Answer the Following Questions Using the Information Below

question 82

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 to break even?

• A) 34 packages
• B) 50 packages
• C) 100 packages
• D) 150 packages

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Definitions:

Apparent Agency

A situation where a principal indirectly indicates that another (the agent) is authorized to act, leading a third party to believe that the agent is acting within their authority.

Contractual Capacity

The legal ability of a person to enter into a binding contract.

Lawful Purpose

Involves activities or objectives that are not illegal or prohibited by law, often a prerequisite in contract law to ensure that the contract’s intent complies with legal standards.

Agency Relationship

A legal relationship between two parties, where one (the agent) is authorized to act on behalf of the other (the principal) in legal or business dealings.