tourist co takes tourists on helicopter tours of Hawaii. Each tourist buys a $150 ticket; the variable costs average $60 per person. Seventh Heaven has annual fixed costs of $702,000.

Required: A. Compute the average number of tours the company must conduct per month to break even.

B. Compute the average sales revenue needed per month to produce a target average profit of $36,000 per month.

C. Calculate the contribution margin ratio.

D. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point.

1. A decrease in tour prices.

2. The termination of a salaried clerk (no replacement is planned).

3. A decrease in the number of tours sold.