Parkway Travel Tours is organizing a five-day trip from Toronto to Branson, Missouri, a family town with all types of attractions and theatres. Although it is a small town (around 10,000 people), Branson attracts millions of visitors every year. Branson hosts more than 100 live shows in 52 state-of-the art theatres. For this particular five-day trip, it will cost the agency the following:

Buss and driver ……………………..            $2,500/day

Travel guide ………………………...            $500/day

Advertising ………………………....                        $1,000 (brochure and newspapers)

Meals per person/day ……………….            $5.00 (4 breakfasts)

$20.00 (5 dinners)

Hotel rooms (night) ………………...             $60.00 (4 nights)

Events/attractions ………………….             $40.00 (per event for a total of 7 events)

Other fixed costs …………………..             $1,000

Miscellaneous variable costs ………              $100 (per person)

Price per client ……………………..             $1,700

With the above information, calculate the following:

1. Total fixed costs

2. Variable costs (per client)

3. Contribution margin (per client)

4. PV ratio

5. The number of clients needed to break-even

6. The number of clients needed if Parkway wants to generate a $5,000 profit