Solution-Compute the average sales revenue needed to produce

Compute the average sales revenue needed to produce

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Reference no: EM132562401

CarePlus provides recreational day trips for people with mental illnesses. Each client buys a $150 ticket for each trip; the variable costs average $60 per ticket. CarePlus has annual fixed costs of $702,000.

Required:

Question A. Compute the average number of tickets the company must conduct to break even.

Question B. Compute the average sales revenue needed to produce a target average profit of $36,000 per month.

Question C. Calculate the contribution margin per ticket.

Question D. Determine whether the following events will increase, decrease, or not affect the company's break-even point.

A decrease in ticket prices.
The termination of a salaried clerk (a replacement is planned).
A decrease in the average variable cost.
Instead of having its office building cleaned by a cleaning service, a business plans to hire its own cleaning crew
An increase in rental expense

Reference no: EM132562401

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Compute the average sales revenue needed to produce

Reference no: EM132562401

Reference no: EM132562401

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