CVP analysis, service firm. Wildlife Escapes generates average revenue of $9,200 per per- son on its five-day package tours to wildlife parks in Kenya. The variable costs per person are

Annual fixed costs total $1,287,000.
REQUIRED 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 $214,500.
3. If fixed costs increase by $40,500, what decrease in variable costs must be achieved to maintain the breakeven point calculated in requirement 1?LO1

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Airfare $3,500 Hotel accommodations Meals 1,200 480 Ground transportation 920 Park tickets and other costs 240