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Please show all work. Color-Rama, an amusement park that features three themed worlds (Blue World, Red World, and Green World), generates average revenue of $8,000
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Color-Rama, an amusement park that features three themed worlds (Blue World, Red World, and Green World), generates average revenue of $8,000 per person on its week-long package. Annual fixed costs total 560,000. The variable costs per person are: Calculate the number of tour packages that must be sold to break even. Calculate the revenue needed to earn a target operating income of $104,000. (round to the nearest dollar amount) Assume Color-Rama now faces a 35% income tax. Will the breakeven point increase or decrease or not change? Assume the company wants to earn a target net income of $104,000 and faces a 35% income tax. What is the new needed revenue($ and units)? Round to nearest and whole unit. If fixed costs increase by $10,000, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement The general manager at Color-Rama proposes to increase the price of the package tour to $8, 600 to decrease the breakeven point in units. Using information in the original problem, calculate the new breakeven point in units (Round to the nearest whole number). What factors should the general manager consider before deciding to increase the price of the package tourStep by Step Solution
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