Mechum River Anglers, a division of Old Dominion Travel, offers two types of guided flyfishing tours, Basic and Deluxe Operating income for each tour type in 20X0 is as follows Basic Deluxe Revenues (500 x $900 400 x $1,650) $450,000$660,000 Operating costs Administrative salaries 120,000 100,000 Guide wages 130,000 380,000 Supplies 50,000 100,000 Depreciation of equipment 25,000 60,000 Vehicle fuel 30,000 24,000 Allocated corporate overhead 45,000 66,000 Total operating costs 400,000 730,000 Op

Answer rating: 100% (QA)

1 Barrett should not drop the deluxe tours as follows Lost revenues from deluxe tours 660000 Avo... View the full answer