High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $220 ticket; the variable costs average $99 per person. High Flying has annual fixed costs of $653,400.

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 $54,450.
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. Break-even tours =

B. Tours to earn $54,450 =

C. Contribution Margin =

D-1. A decrease in tour prices =

D-2. The termination of a salaried clerk (no replacement is planned =

D-3. A decrease in number of tours sold =