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Question 4. Dreams Plc. is a service company providing touristic tours. The price for each tour is 320. Dreams Plc. is currently selling 1,120 tours
Question 4. Dreams Plc. is a service company providing touristic tours. The price for each tour is 320. Dreams Plc. is currently selling 1,120 tours per year. Considering that the cost per tour is 20 and the annual fixed costs equal 420,000, which of the following statements is true? a) Dreams Plc. should sell more than 1,400 tours per year to have positive profits. b) Dreams Plc. shows a positive annual profit of 84,000 when selling 1,120 tours. c) The current margin of safety represents 20% of the budgeted level of activity. d) None of the answers is true
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