Question: Question 2 Break-even Point & Sensitivity Analysis Blue Water Escape takes tourists on helicopter tours of Hawaii. Each tourist buys a $120 ticket: the variable

Question 2 Break-even Point & Sensitivity Analysis Blue Water Escape takes

Question 2 Break-even Point & Sensitivity Analysis Blue Water Escape takes tourists on helicopter tours of Hawaii. Each tourist buys a $120 ticket: the variable costs average $40 per person. Blue Water Escape has annual fixed costs of $840,000. Required: a) How many tours must the company conduct in a month to break-even? b) How many tours must the company conduct to produce a target net profit of $50,000 per month? c) Calculate the contribution margin ratio. (Round your answer to 1 despl.) d) Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point i) An increase in tour prices. ii) A decrease in the number of tours sold. ill) The termination of a salaried clerk (no replacement is planned)

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