CarePlus provides recreational day trips for people with mental illnesses. Each client buys a $150 ticket for each trip; the variable costs average $60 per ticket. CarePlus has annual fixed costs of $702,000.

Required:

A. Compute the average number of tickets the company must conduct to break even.(3 Marks)

B. Compute the average sales revenue needed to produce a target average profit of $36,000 per month.(3 Marks)

C. Calculate the contribution margin per ticket.(2 Marks)

D. Determine whether the following eventswill increase, decrease, or not affect the company's

break-even point.

(5 Marks)

1. A decrease in ticket prices.
2. The termination of a salaried clerk (a replacement is planned).
3. A decrease in the average variable cost.
4. Instead of having its office building cleaned by a cleaning service, a business plans to hire its own cleaning crew
5. An increase in rental expense