Solution-Calculate the number of package tours

Calculate the number of package tours

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Reference no: EM13514658

CVP analysis, service firm Wildlife Escapes generates average revenue of $4,000 per person on its five-day package tours to wildlife parks in Kenya. The variable costs per person are:

1488_Calculate the number of package tours.PNG

Annual fixed costs total $480,000.

1. Calculate the number of package tours that must be sold to break even.

2. Calculate the revenue needed to earn a target operating income of $1 00,000.

3. If fixed costs increase by $24,000, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement1?

Reference no: EM13514658

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Calculate the number of package tours

Reference no: EM13514658

Reference no: EM13514658

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