The company selected for performing break even analysis is Your Travel Biz – YTB International which belongs to the travel industry and provides internet based booking services for independent home based representatives in several parts of North and South America. The company operates through three subsidiaries which are YTB Marketing Inc., YTB Franchise Services and YTB Travel Network, Inc.
YTB Marketing Inc. is involved in marketing Internet Travel Centers which are used and operated by marketing representatives for travel booking services. The company charges a setup fee of $449.95 and $49.95 per month for setting up a single Internet Travel Center (Cauthen, 2009).
The activity used for performing a break even analysis is the marketing of ITC’s through representatives and the time period selected for the current analysis is 2008 as the most recent annual report available for the company is that of 2008. The break even analysis in this paper is based on sales price per unit, variable cost per unit and fixed costs for the period which are estimated using the annual report of the company.
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