High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $130 ticket; the variable costs average $65 per person. High Flying has annual fixed costs of $780,000.

Required:

1. Compute the average number of tours the company must conduct per month to break even.
2. Compute the average sales revenue needed per month to produce a target average profit of $48,750.
3. Calculate the contribution margin ratio. (Round your answer to 2 decimal places.)
4. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point. A decrease in tour prices, The termination of a salaried clerk (no replacement is planned), a decrease in the number of tours sold.