1. **State the problem:** Calculate the total gross income in PHP for the Travel Agency from a 4-day/3-night itinerary for two adults with given airfare segments, hotel/transfer costs, and ancillary services. 2. **Given data:** - Airfare segment 1 (MNL to Hanoi): 12,000 PHP, agency charge 18% professional fee - Airfare segment 2 (Hanoi to Bangkok to MNL): 9,000 PHP, no agency charge - Hotels/transfer: 125 USD, agency charge 15% commission - Ancillary service: travel insurance 1,500 PHP per person 3. **Convert USD to PHP:** Assuming 1 USD = 56 PHP (approximate, since not given explicitly), hotel/transfer cost in PHP: $$125 \times 56 = 7000$$ PHP 4. **Calculate agency income from airfare segment 1:** Agency charge = 18% of 12,000 PHP $$0.18 \times 12,000 = 2160$$ PHP 5. **Calculate income from airfare segment 2:** No agency charge, so income = 0 PHP 6. **Calculate agency income from hotels/transfer:** Agency charge = 15% of 7,000 PHP $$0.15 \times 7000 = 1050$$ PHP 7. **Calculate ancillary service income:** Travel insurance per person = 1,500 PHP For two adults: $$1,500 \times 2 = 3,000$$ PHP 8. **Calculate total gross income:** Sum of all incomes: $$2160 + 0 + 1050 + 3000 = 6210$$ PHP 9. **Calculate total cost paid by customer:** Sum of all base costs plus agency charges: - Airfare segment 1: 12,000 PHP - Airfare segment 2: 9,000 PHP - Hotels/transfer: 7,000 PHP - Travel insurance: 3,000 PHP Total base cost: $$12,000 + 9,000 + 7,000 + 3,000 = 31,000$$ PHP Add agency charges (2160 + 1050 = 3210 PHP) to base cost: $$31,000 + 3,210 = 34,210$$ PHP 10. **Answer:** The total gross income earned by the Travel Agency is the sum of agency charges plus ancillary income: $$2160 + 1050 + 3000 = 6210$$ PHP Since the question asks for total gross income (agency earnings), the answer is **6210 PHP**. **Note:** The options given (PHP 11,840.00, PHP 12,660.00, PHP 13,080.00, PHP 14,140.00) do not match this calculation, so possibly the USD to PHP conversion rate or other assumptions differ. If we assume 1 USD = 56 PHP, the total gross income is 6210 PHP. If we consider the agency charge on airfare segment 2 as zero, but the income mechanic is blank, possibly it means the agency earns the full 9,000 PHP from segment 2. Adding that: $$2160 + 9000 + 1050 + 3000 = 15,210$$ PHP, which is above the options. Alternatively, if the agency charge on segment 2 is 0%, but the agency earns the full 9,000 PHP, and the hotel/transfer is 125 USD with 15% commission, and travel insurance is 1,500 PHP per person, then total income is: $$2160 + 9000 + 1050 + 3000 = 15,210$$ PHP Since this is not in options, the closest option is PHP 13,080.00, possibly assuming a different USD to PHP rate. **Slug:** "travel income" **Subject:** "finance"