=+4-35 KK CVP analysis, service firm OBJECTIVES 1, 2, 4 Wildlife Escapes generates average revenue of $5000 per person on its five-day package tours to wildlife parks in Kenya. The variable costs per person are:

Airfare $1400 Hotel accommodations 1100 Meals 300 Ground transportation 100 Park tickets and other costs 800 Total $3700 Annual fixed costs total $520000.

158 Chapter 4: Cost–volume–profit analysis M04_HORN3377_02_LT_C04.indd 158 2/09/13 3:22 PM Required 1 Calculate the number of package tours that must be sold to break even.