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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: Airfare                                              $1,600 Hotel accommodations                     3,100 Meals                                                    600 Ground transportation                         300 Park tickets and other costs                 700 Total                                                 $6,300 Annual fixed costs total $570,000. Q. Calculate the revenue needed to earn a target operating income of $102,000.

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: Airfare                                              $1,600 Hotel accommodations                     3,100 Meals                                                    600 Ground transportation                         300 Park tickets and other costs                 700 Total                                                 $6,300 Annual fixed costs total $570,000. Q. Calculate the revenue needed to earn a target operating income of $102,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:

Airfare                                              $1,600

Hotel accommodations                     3,100

Meals                                                    600

Ground transportation                         300

Park tickets and other costs                 700

Total                                                 $6,300

Annual fixed costs total $570,000.

Q. Calculate the revenue needed to earn a target operating income of $102,000. 

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