The Grand Canyon Railway is thinking about selling souvenirs on the train. The souvenirs will sell for $10 each and have a variable cost of $4 each. The Grand Canyon Railway managers think that they will sell an average of one souvenir to each passenger. Assuming that fixed expenses remain at $50,000, how will the sale of souvenirs affect the number of passengers needed to break even?

a. It will have no effect.

b. It will increase the number needed.

c. ) It will decrease the number needed.

d. Not enough information is provided.

Grand Canyon Railway operates a turn-of-the-century train that transports passengers from Williams, Arizona, to the Grand Canyon and back every day. Assume that the train tickets sell for $60 per passenger, the railway’s variable costs are $10 per passenger, and its fixed expenses are $50,000 each month.