High Flying takes tourists on helicopter tours of Hawall. Each tourist buys a $180 ticket; the...
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High Flying takes tourists on helicopter tours of Hawall. Each tourist buys a $180 ticket; the variable costs average $63 per person High Flying has annual fixed costs of $561,600. Required: A. Compute the average number of tours the company must conduct per month to break even. B. Compute the average sales revenue needed per month to produce a target average profit of $46,800 per month. C. Calculate the contribution margin ratio. (Round your answer to 2 decimal places.) D. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point. A. Break-even tours B. Tours to earn C. Contribution margin ratio D-1. A decrease in tour prices. D-2. The termination of a salaried clerk (no replacement is planned). D-3. A decrease in the number of tours sold. High Flying takes tourists on helicopter tours of Hawall. Each tourist buys a $180 ticket; the variable costs average $63 per person High Flying has annual fixed costs of $561,600. Required: A. Compute the average number of tours the company must conduct per month to break even. B. Compute the average sales revenue needed per month to produce a target average profit of $46,800 per month. C. Calculate the contribution margin ratio. (Round your answer to 2 decimal places.) D. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point. A. Break-even tours B. Tours to earn C. Contribution margin ratio D-1. A decrease in tour prices. D-2. The termination of a salaried clerk (no replacement is planned). D-3. A decrease in the number of tours sold.
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Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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