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CHI2I-3 2-1 PHOBLEM II Contributioan Hargin/Cont-Volune-Profit Analysis (24 POINTS) Uncommon Adventures in considering a special travel pFomotion on a week- long trip to a renote

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CHI2I-3 2-1 PHOBLEM II Contributioan Hargin/Cont-Volune-Profit Analysis (24 POINTS) Uncommon Adventures in considering a special travel pFomotion on a week- long trip to a renote ski resort in Colorado. The price of this tour is $1500 per person. Costs for the tour are as follows: Costs per tourist: Ledging $295 110 Lift tickets Food/entertainnent Airplane tickets 220 720 Fixed costs (per tour): Advertising Administration Crew Salaries $ 2,500 $ 5,000 3.000 10,500 Answer the following independent questions. REQUIRED: the number of tourists, please round up answers You sust shon all of you Hork to get any Credit When deternining the nearest tourist. Calculate the contribution margin per tourist. (3 pts.) 100% 720) 48% $780 52% 1. How many tourists nust Uncomnon Adventures have on esch tour in order to break even? (3 pts.) 2. 10,500 2 * 780 13.46 14 How much gales revenue must Uncommon Adventures-bring in inorder to 3. earn a profit of $5,000 per tour? (4 pts.) (#10,500+ 5, 000 z#29,808 52% Assuming Uncomnon Adventures has an average of 15 passengers per tour, 4. how much profit do they make on each tour? (4 pts.) A1,700 A LO20 sales L15X1.6x#1200) FC NI Leave the sales price at $1,500, add a sales comnission of $150 The number of tourists is PLAN B) per tourist, and inerease advertising by $7,500. expected to double under this plan. (4 pts.) 45,000 $26,100>0 #18,900 0 Sales (15 x2x 1500) VC ( 30 x 870) cm FC L0,500+7,500) NI Which plan do you recommend, if any, to naximize net income? (2 pts.) Neither A nor Bis geod. The status guo is lbast: States Qur H1,200 4900 1,020 Net Income 10

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