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Saven Sdn. Bhd. takes tourists on helicopter tours of Pulau Perhentian Each tourist buys a RM150 ticket; the variable costs average RM60 per person. Saven
Saven Sdn. Bhd. takes tourists on helicopter tours of Pulau Perhentian Each tourist buys a RM150 ticket; the variable costs average RM60 per person. Saven Sdn. Bhd. has annual fixed costs of RM702,000. Required: (a) Compute the average number of tours the company must conduct per month to break even. (3 marks) (b) Calculate the contribution margin ratio. (2 marks) (c) Based on the original data, calculate the margin of safety in both unit and value if the company plans to have 1,800 tours for the month. (4 marks) (d) Calculate the margin of safety in both unit and the average sales revenue needed per month to produce a target average profit of RM36,000 per month (4 marks) (e) Assume that Saven Sdn. Bhd. is able to reduce the variable cost per person by RM10 Compute the selling price management could charge if it desires to maintain the current break-even point
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