All Seasons Travel is opening an office in Phil.  Fixed monthly
expenses are: office rent ($3,400), depreciation of office furniture
($190), utilities ($140), a special telephone line ($390), a
conections with the airlines' computerized reservation service ($480),
and the salary of a travel agent ($1,800),  Variable expenses include
commissions for the travel agent (6% of sales), advertizing (6% of
sales), supplies and postage, (1% of sales), and usage fees for the
telephone line and computerized reservation service (7% of sales).
1.  Use the contribution margin ratio CVP formula to compute the
travel agencies break-even sales in $.  If the average sale is an $800
plane ticket, how many ticket must be sold to break even?
2.  Use the income statement equation approach to compute $ sales
needed to earn monthly operating income of $3,500.
3.  Graph the travel agency's CVP relationships.  Assume that an
average sale is an $800 plane ticket.  Show the break-even point,
sales revenue line, fixed expense line, variable expense line,
operating loss area, operating income area, and the sales in units
(tickets) and $ when monthly operating income of $3,500 is earned. 
The graph should range from 0 to 20 unit (plane tickets).
4.  Assume that the average sale price decreases to $500 per ticket. 
Use the contribution margin approach to compute the new break-even
point in units (tickets).  How does the lower sale price affect the
break-even point?