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Safari Escapes generates average revenue of $6,250 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 $6,250 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 $590,000. 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 units, then calculate the number of package tours that must be sold to break even. = Breakeven number of units Data table - Requirements Airfare $ 1,300 1. Hotel accommodations Meals 2,450 2. Calculate the number of package tours that must be sold to break even. Calculate the revenue needed to earn a target operating income of $92,000. 3. 900 If fixed costs increase by $29,500, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement 1? Ground transportation Park tickets and other costs 100 500 $ 5,250 4. The general manager at Safari Escapes proposes to increase the price of the package tour to $7,750 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? Total Print Done Print Done
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