If fixed costs increase by 24000 what decrease in variable, Ask an Expert

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CVP analysis, service firm. Wildlife Escapes generates average revenue of $4,000 per person on its five-day package tours to wildlife parks in Kenya. The variable costs per person are:

Airfare $1,500
Hotel accommodations 1,000
Meals 300
Ground transportation 600
Park tickets and other costs 200
Total $3,600

Annual fixed costs total $480,000.

a. find out the number of package tours that must be sold to break even.

b. find out the revenue needed to earn a target operating income of $100,000

c. If fixed costs increase by $24,000, what decrease in variable costs must be achieved to maintain the breakeven point find outd in requirement 1?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M992654

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