Last year, Kiran's Party Tours had revenues of $60,000 and fixed expenses of $15,000. The only product or service offered by the business was a $230 local tour. On average, running one tour cost the business $95.

- What is the contribution margin for Krian's business? Create a simple contribution income statement for Kiran's Party Tours for last year.

- How many tours does Kiran needs to sell to reach break-even point?

- Next year, Kiran is expecting to sell 250 tours. The sale price will be kept the same, but the cost per tour is expected to increase by 10%. How does Kiran's margin of safety compare between the two years? Is there any business advice you would like to give her?