Here is the problem: Sea Vista Company operates tour boats. Its predicted operations for the year are as follows: Revenues (2,000 tours per year) $600,000 Costs: Variable $200 per tour Fixed $120,000 per year From the above information, the company correctly determines that its total cost per tour at the p level of output noted above is as follows: $400,000 $120,000 $520,000 Total variable costs ($200 x 2,000) Total Fixed costs Total costs Divided by the number of tours for the year = Total cost per tour 2,000 $260 The company has received a request to provide 90 tours at a price of $205 each, which constitu very large discount from their regular price. Sea Vista has plenty of capacity to do these tours ir to its regular business, and it has been determined that doing these tours will not affect the con regular sales in any way. Required: A. Prepare an income statement in contribution margin format) for Sea Vista for the year with inclusion of the special request for the 90 tours at the lower price. B. Prepare an income statement in contribution margin format) for Sea Vista for the year that the special request for the 90 tours at the lower price. C. Should Sea Vista accept the special request for the additional 90 tours at the dramatically price that is actually below their total cost per tour? E F 6 A 7 B Sea Vista Company Projected Income Statement Without Special Requested Tours 8 9 Revenues Variable costs Contribution margin 10 11 12 13 14 15 16 Less: Fixed costs Net Income B Sea Vista Company Projected Income Statement Including Special Requested Tours 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Regular revenues Special request revenues Total revenues Variable costs Contribution margin Less: Fixed costs Net Income C