Sahara Tours, Inc., organizes adventure tours for people interested in visiting a desert environment. A desert tour
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Sahara Tours, Inc., organizes adventure tours for people interested in visiting a desert environment. A desert tour generally lasts three days. Sahara provides food, equipment, and guides. Larry Jobaria, the president of Sahara Tours, needs to set prices for the coming year. He has available the company’s past cost data in the following table:
.:.
Required
Write a memo to Mr. Jobaria explaining the potential advantages and disadvantages of using each of the different per-tourist cost figures as a basis for establishing a price to charge tourists during the coming year. What other factors must Mr. Jobaria consider in developing a pricing strategy?
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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