Question
Helicopter Rides.The price of each ticket is $150 and the variable costs average $60 per person. Steve's monthly fixed costs are $58,500. 1. What is
Helicopter Rides.The price of each ticket is $150 and the variable costs average $60 per person. Steve's monthly fixed costs are $58,500. 1. What is Steve's contribution margin per ride? 2. How many tours must the company conduct in a month to break even? 3. What sales revenue is needed to produce a net profit of $36,000 per month? 4. What is Steve's contribution margin ratio? 5. If annual sales increase by $100,000, by what amount will operating income increase? 6. If annual sales decrease by $50,000, by what amount will operating income decrease?
I need help with #5 & #6
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