Question
3 High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $160 ticket; the variable costs average $56 per person. High
3 High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $160 ticket; the variable costs average $56 per person. High Flying has annual fixed costs of $748,800. Required: A. Compute the average number of tours the company must conduct per month to break even. B. Compute the average sales revenue needed per month to produce a target average profit of $52,000 per month. C. Calculate the contribution margin ratio. (Round your answer to 2 decimal places.) D. Determine whether the actions that follow will increase, decrease, or not affect the company's break- even point. A. B. Break-even tours Tours to earn C. Contribution margin ratio D-1. A decrease in tour prices. D-2. The termination of a salaried clerk (no replacement is planned). D-3. A decrease in the number of tours sold.
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