Canyon Escape sells individual tickets for $75 for walking tours of the Grand Canyon. Unit-level costs including

Question:

Canyon Escape sells individual tickets for $75 for walking tours of the Grand Canyon. Unit-level costs including lunch, are $15 per ticket; fixed costs total $200,000 per year.

Required 7S / Ses66-cG

a. How many tours must be sold to break even? 2 o8a0.0 [G2 = 2 33 Y

b. What level of revenue is needed to earn a target income of $42,000? 2 3.54 YAK Vai 622 4%o3Y

c. If unit-level costs increase to $20 per tour, what decrease in annual fixed costs must be achieved to a keep the same break-even point as calculated in requirement (a)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Management Strategies For Business Decisions

ISBN: 12

4th Edition

Authors: Ronald Hilton, Michael Maher, Frank Selto

Question Posted: