Javelin Cycling Vacations Ltd. offers cycling tours in Canada and France. Each year a single tour is offered. For 2022, the company is offering a tour of the Continental Divide. Following is an estimate of the revenues and costs for this tour: JAVELIN CYCLING VACATIONS LTD. Continental Divide Tour Revenue and Expenses Forecast for 2022 Revenue Expenses: Tour guide salaries Promotion Gratuities Office and equipment insurance Group accident and life insurance4 Depreciation Tour support employee salaries Bicycle maintenance Customer meals Hotel and camping costs Administrative and office expense5 Tour coordinator salary Total expenses Net operating income (loss) 'Javelin will incur a cost of 5% of the salaries in severance costs when employees are terminated. 2Promotion costs have already been incurred. 3Office and equipment insurance is paid in advance of commencement of the tour. 4Insurance is payable only if the tour is confirmed. 5These expenses are for booking accommodations, arranging meals, and providing communication services during the tour. Required: 1. Indicate whether the tour should be offered. Provide calculations in support of your response. 2. Calculate the minimum revenue required to justify offering the tour. $170,000 $ 48,000 12,000 8,000 2,000 7,000 8,000 28,000 7,000 20,000 20,000 3,000 30.000 193,000 $ (23,000)