I want to correct answer accounting Ocean View Company operates tour boats. Its predicted operations for the yearare as follows:Sales (1,000 tours per year) $400,000Costs:VariableFixed$250 per tour$100,000 per yearThe company has received a request to offer 100 tours for $300 each. Ocean Viewhas plenty of capacity to do these tours in addition to its regular business. Doingthese tours would not affect the company's regular sales or its fixed costs.a. Should the company do the special tours for $300 per tour?b. What is the effect of the decision on the company's operating profit?

Step 1: Define Prediction of OperationPrediction of operations in a company means anticipating the…

Answered: Ocean View Company operates tour boats.…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 10P

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amounts with a $0 balance, make sure to enter " 0 " in the appropriate input field.) Now compute the breakeven point in sales dollars. Enter the formula, then compute the breakeven sales. (Enter the contribution margin ratio as a whole percent. For amounts with a $0 balance, make sure to enter " 0 " in the appropriate input field.)
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