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Safari Escapes generates average revenue of $4,000 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are
Safari Escapes generates average revenue of $4,000 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows: (Click on the icon to view the variable costs per person.) Annual fixed costs total $480,000. Read the requirements. Requirement 1. Calculate the number of package tours that must be sold to break even. Determine the formula used to calculate the breakeven number of un Requirements Requirement 2. Calculate the revenue needed to earn a target opera 1. 2. 3. Determine the formula used to calculate the revenue to achieve the ta ven. (Enter ratios, if any, to two decimal places, X.XX.) Calculate the number of package tours that must be sold to break even. Calculate the revenue needed to earn a target operating income of $100,000. If fixed costs increase by $24,000, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement 1? The general manager at Safari Escapes proposes to increase the price of the package tour to $4,400 to decrease the breakeven point in units. Using information in the original problem, calculate the new breakeven point in units. What factor manager consider before deciding to increase the price of the package tour? Requirement 3. If fixed costs increase by $24,000, what decrease in Determine the formula to calculate the reduction in variable costs to s Print Done cost per unit Requirement 4. The general manager at Safari Escapes proposes to increase the price of the package tour to $4,400 to decrease the breakeven point in units. Using information in the original problem, calculate the new breakeven point in units. What factors should the general manager consider before deciding to increase the price of the package tour? 0 Data Table $ Airfare Hotel accommodations Meals Ground transportation 1,400 1,100 300 200 Park tickets and other costs 600 $ 3,600 Total Print Done
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