High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $170 ticket; the variable costs average $68 per person. High Flying has annual fixed costs of $918,000. Required: A. Compute the average number of tours the company must conduct per month to break even. B. Compute the average sales revenue needed per month to produce a target average profit of $25,500 per month. C. Calculate the contribution margin ratio. (Round your answer to 2 decimal places.) D. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point.

Answer

A. Break-even tours

B. Tours to earn

C. Contribution margin ratio

D-1. A decrease in tour prices

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

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