CVP analysis, service firm Lifetime Escapes generates average revenue of $5,000 per person on its five-day package tours to wildlife parks in Kenya. The variable costs per person are as follows:

Airfare $1,400

Hotel accommodations 1,100

Meals 300

Ground transportation 100

Park tickets and other costs 800

Total $3,700

Annual fixed costs total $520,000.

Required

1. Calculate the number of package tours that must be sold to break even.

2. Calculate the revenue needed to earn a target operating income of $91,000.

3. If fixed costs increase by $32,000, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement 1?