solve plz

3.33, 3.34, 3.35

3-33 [WP analysis. service rm. Lifetime Escapes generates average revenue of $500 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows: Airfare $1.600 Hotel accommodations 3,100 Meals 600 Ground transportation 300 Park tickets and other costs A Total 33.300 Annual fixed costs total $510,000. 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 31 02,000. ASSIGNMENT MATERIAL 99 3. If xed costs increase by 319.000. what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement I? I. The general manager at Lifetime Escapes proposes to increase the price of the package tour to $8,200 to decrease the breakeven point in units. Using information in the original problem. calculate the new breakeven point in units. What factors should the general manager consider before deciding to increase the price of the package tour? 3-34 CVP, target operating income, service firm. KinderKids provides daycare for children Mondays through Fridays. Its monthly variable costs per child are as follows: Lunch and snacks $100 Educational supplies 30 Other supplies (paper products, toiletries, etc.) 20 Total $150 Monthly fixed costs consist of the following: Rent $1,500 Utilities 150 Insurance 200 Salaries 1,700 Miscellaneous 450 Total $4,000 KinderKids charges each parent $400 per child per month. 1. Calculate the breakeven point. 2. KinderKids' target operating income is $5,000 per month. Compute the number of children who must be enrolled to achieve the target operating income. 3. KinderKids lost its lease and had to move to another building. Monthly rent for the new building is $2,200. At the suggestion of parents, KinderKids plans to take children on field trips. Monthly costs of the field trips are $1,100. By how much should KinderKids increase fees per child to meet the target operating income of $5,000 per month, assuming the same number of children as in requirement 2? 3-35 CVP analysis, margin of safety. (CMA, adapted) Arvin Tax Preparation Services has total budgeted revenues for 2014 of $618,000, based on an average price of $206 per tax return prepared. The company would like to achieve a margin of safety percentage of at least 45%. The company's current fixed costs are $327,600, and variable costs average $24 per customer. (Consider each of the following separately). 1. Calculate Arvin's breakeven point and margin of safety in units. 2. Which of the following changes would help Arvin achieve its desired margin of safety? a. Average revenue per customer increases to $224. b. Planned number of tax returns prepared increases by 15% c. Arvin purchases new tax software that results in a 5% increase to fixed costs but e-files all tax returns, which reduces mailing costs an average $2 per customer