CVP analysis, service firm. Lifetime Escapes generates average revenue of $7,500 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows: $1,600 3,100 600 300 Airfare Hotel accommodations Meals Ground transportation Park tickets and other costs Total $6,300 Annual fixed costs total $570,000.
CVP analysis, service firm. Lifetime Escapes generates average revenue of $7,500 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows: $1,600 3,100 600 300 Airfare Hotel accommodations Meals Ground transportation Park tickets and other costs Total $6,300 Annual fixed costs total $570,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the number of package tours that must be sold to break even. If fixed costs increase by $19,000, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated?
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