Canyon Escape sells individual tickets for $75 for walking tours of the Grand Canyon. Unit-level costs including
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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)?
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Related Book For
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto
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