Northampton City Tours (NCT) offers personalized historical and architectural tours in a large midwestern city and the local suburbs. NCT charges $364.00 per trip to or from the airport. The variable cost for a tour totals $49.00, for fuel, driver, and so on. The monthly fixed cost for NCT is $19, 845. Required: How many tours must NCT sell every month to break even? NCT's owners believe that 70 tours is a reasonable forecast of the average monthly demand. What is the margin of safety in terms of the number of tours? Note: Round your answer to the nearest whole number.

Northampton City Tours (NCT) offers personalized historical and architectural tours in a large midwestern city and the local suburbs. NCT charges $364.00 per trip to or from the airport. The variable cost for a tour totals $49.00, for fuel, driver, and so on. The monthly fixed cost for NCT is $19, 845. Required: How many tours must NCT sell every month to break even? NCT's owners believe that 70 tours is a reasonable forecast of the average monthly demand. What is the margin of safety in terms of the number of tours? Note: Round your answer to the nearest whole number.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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