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2b) High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $150 ticket; the variable average S60 per person. High Flying has
2b) High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $150 ticket; the variable average S60 per person. High Flying has annual fixed costs of $702,000. Required A. Compute the average number of tours the company must conduct per month to brea k even. B. Compute the average sales revenue needed per month to p roduce a target average profit of $36,00 month. See below (answer to "B") C. Calculate the contribution margin ratio. D. Determine whether the actions that follow will increase, decrease, or not affect the company's brea point. 1. A decrease in tour prices. 2. The termination of a salaried clerk (no replacement is planned). 3. A decrease in the number of tours sold. 27) Trane Medical Clinic offers a number of specialized medical services. A review of data for the year j ended revealed variable costs of $32 per patient day; annual fixed costs of $480,000, which are incur throughout the year; and semivariable costs that displayed the following behavior at the "peak" and" activity: January (2,400 patient days): $258,400 August (2,900 patient days): $278,900 Required A. Calculate the total cost for an upcoming month (2,800 patient days) if current cost behavior patter continue. Trane uses the high-low method to analyze cost behavior. B. There is a high probability that Trane's volume will increase in forthcoming months as patients ta? advantage of new scientific advances. Can the data and methodology used in part (a) for predicting t 2,800 patient days be employed to estimate the costs for, say, 3,800 patient days? Why or why not
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