Applying the high-low method, Bemidji Wilderness Resort estimates the total costs of providing guide services to be $9,000 per month, plus 25 percent of guide service revenue.

a.What is the contribution margin ratio of the resort's guide service operations? (%)

b.How much guide service revenue must the resort generate for its guide service operations to break even?

c.What is the resort's expected total cost of providing guide services in a month for which guide service revenue is $60,000?