Question
Niagra Tours Inc. takes thrill-seekers on sky diving trip over the Florida shoreline. Each jumper buys a $96 ticket; the variable costs average $42 per
Niagra Tours Inc. takes thrill-seekers on sky diving trip over the Florida shoreline. Each jumper buys a $96 ticket; the variable costs average $42 per person. Niagra fours his monthly fixed costs of $35,100. Required: 1. What is the contribution margin per unit? 2. How many tours must the company conduct in a month to breakeven? 3. What is the contribution margin ratio? 4. How much revenue would Niagra Tours have to eam to generate a profit of $77,400? 5. If Niagra Tours eams actual revenue of $142,000, what is their margin of safety in dollars
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