Question

Parkway Travel Tours is organizing a five-day trip from Toronto to Branson, Missouri, a family town with all types of attractions and theatres. Although it is a small town (around 10,000 people), Branson attracts millions of visitors every year. Branson hosts more than 100 live shows in 52 state-of-the art theatres. For this particular five-day trip, it will cost the agency the following:
Buss and driver .......... $2,500/day
Travel guide ............ $500/day
Advertising ............. $1,000 (brochure and newspapers)
Meals per person/day ....... $5.00 (4 breakfasts)
$20.00 (5 dinners)
Hotel rooms (night) ......... $60.00 (4 nights)
Events/attractions ........ $40.00 (per event for a total of 7 events)
Other fixed costs ......... $1,000
Miscellaneous variable costs ... $100 (per person)
Price per client .......... $1,700

With the above information, calculate the following:
1. Total fixed costs
2. Variable costs (per client)
3. Contribution margin (per client)
4. PV ratio
5. The number of clients needed to break-even
6. The number of clients needed if Parkway wants to generate a $5,000 profit



$1.99
Sales1
Views59
Comments0
  • CreatedDecember 03, 2014
  • Files Included
Post your question
5000