All applicaui p PROBLEM 12-18 Dropping or Retaining a Tour [L02] Blueline Tours, Inc., operates tours throughout the United States. A study has indicated th of the tours are not profitable, and consideration is being given to dropping these tou the company's overall operating performance r conducted in the southern states. An One such tour is a two-day Historic Mansions bus tou cel income statement from a typical Historic Mansions tour is given below: $3,000 900 2,100 100% Ticket revenue (100 seat capacity 40% occupancy $75 ticket price per person). Variable expenses ($22.50 per person). . . . 30 70% Tour expenses: $600 350 700 125 450 200 50 175 300 2,950 Room and meals, bus driver and tour guide Bus maintenance and preparation.. Net operating loss.$ (850)