Reference no: EM132018699
Question - Family escapes generates average revenue of $4,500 per person on its five day package tours to wildlife parks in Kenya. The variable costs per person are as follows.
Airfare= $,1400
Hotel accommodations= 1,000
Meals = 700
Ground Transportation = 100
Park tickets and other costs = 400
Total = $3,600
Annual fixed costs = $540,000
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 $90,000?
3. If fixed costs increase by 30,000 what decrease in variable cost per person must be achieved to maintain this breakeven point calculated in question 1.
4. The general manager at family escapes proposes to increase the price of the package tour to 7,600 to decrease the breakeven point. Using information in the original problems calculate the new breakeven point.
|
What is the project net present value
: The Karns Oil Company is deciding whether to drill for oil on a tract of land that the company owns. what is the project's net present value?
|
|
Use for debt when calculating the cost of capital
: Liu Industrial Machines issued 149,000 zero coupon bonds six years ago. what weight should it use for debt when calculating the cost of capital?
|
|
What is the price per share of nogrowth stock
: NoGrowth Corporation currently pays a dividend of $0.53 per quarter, and it will continue to pay this dividend forever What is the price per share of NoGrowth.
|
|
What is the amount of your total principal payments
: Find the amount of each monthly payment. What is the amount of your total principal payments over the 12 years?
|
|
Calculate the number of package tours
: Annual fixed costs = $540,000, Calculate the number of package tours that must be sold to break even
|
|
What is gold company stock worth to you
: The next year the common stock of Gold Corp. will pay a dividend of $5.25 per share. If the company is growing at a rate of 2.38 percent per year.
|
|
Which character in wuthering heights do you find interesting
: This could be the character you find most relatable, repulsive, complex, caring, strange, etc. Pretend you are this character and write a diary entry.
|
|
Find what is the cash break-even point
: If the selling price is $48.50 per unit, what is the cash break-even point? If depreciation is $620,000 per year, what is the accounting break-even point?
|
|
Calculating the required return in given case
: The next dividend payment by Mosby, Inc., will be $3.20 per share. The dividends are anticipated to maintain a 3.25 percent growth rate, forever.
|