Question
Parkway Travel Tours is organizing a five-day trip from Toronto to Branson, Missouri, a family town with all types of attractions and theatres. Although it
Parkway Travel Tours is organizing a five-day trip from Toronto to Branson, Missouri, a family town with all types of attractions and theatres. Although it is a small town (around 10,000 people), Branson attracts millions of visitors every year. Branson hosts more than 100 live shows in 52 state-of-the art theatres. For this particular five-day trip, it will cost the agency the following: Buss and driver $2,500/day Travel guide $500/day Advertising $1,000 (brochure and newspapers) Meals per person/day $5.00 (4 breakfasts) $20.00 (5 dinners) Hotel rooms (night) $60.00 (4 nights) Events/attractions $40.00 (per event for a total of 7 events) Other fi xed costs $1,000 Miscellaneous variable costs $100 (per person) Price per client $1,700 Questions With the above information, calculate the following: 1. Total fixed costs 2. Variable costs (per client) 3. Contribution margin (per client) 4. PV ratio
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