View the operating income for each tour type.

Read the requirements.

amount with parentheses.$)$

Difference: Incremental

$(lossin$ revenues$)$ and

savings $in$ costs from

dropping Advanced tours

Lost revenues from Advanced tours

Avoidable operating costs from dropping Advanced tours:

Administrative salaries

Guide wages

Supplies

Vehicle fuel

Total avoidable costs

Gain$/($Ioss$)$ in operating income from dropping Advanced tours

Operating Income for Each Tour Type

Required

If the Advanced tours are discontinued, one administrative position could

be eliminated, saving the company $$110,000.$ Assuming no change in the sales of

Beginner tours, what effect would dropping the Advanced tour have on

the company's operating income?

Refer to the original data. If Quinn River Tours drops the Advanced tours, Ballard

estimates that sales of Beginner tours would increase by $50\%.$ He believes that he

could still eliminate the $$110,000$ administrative position. Equipment currently

used for the Advanced tours would be used by the additional Beginner tours.

Should Ballard drop the Advanced tour? Explain.

What additional factors should Ballard consider before dropping the

Advanced tours?Garcia Company produces three products: A$130,$ B$324,$ and $C587.$ All three products use the same direct material, Brac. Unit data for the three products are in the provided table.

View the unit data for the three products.

minimum of $190$ units of each product.

Read the requirements.

Requirement $1.$ How many units of product A$130,$ B$324,$ and C$587$ should Garcia produce? $($Round to the nearest whole unit.$)$

How many units of product A$130$ should Garcia produce?

Required

How many units of product $A130,B324,$ and $C587$ should Garcia produce?

What is the maximum amount Garcia would be willing to pay for another

$1,260$ pounds of Brac?Garcia Company produces three products: A$130,$ B$324,$ and $C587.$ All three products use the same direct material, Brac. Unit data for the three products are in the provided table.

View the unit data for the three products.

minimum of $190$ units of each product.

Read the requirements.

Requirement $1.$ How many units of product A$130,$ B$324,$ and C$587$ should Garcia produce? $($Round to the nearest whole unit.$)$

How many units of product A$130$ should Garcia produce?

Unit data for the Three Products

Required

How many units of product $A130,B324,$ and $C587$ should Garcia produce?

What is the maximum amount Garcia would be willing to pay for another

$1,260$ pounds of Brac?