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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?

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.
Transcribed Image Text: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.
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