Cost-volume-profit problem

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Reference no: EM13132328

Canyon Escape sells individual tickets for $75 for walking tours of the Grand Canyon. Unit-level cost, including lunch, are $15 per ticket; fixed cost total $200,000 per year

Required:

a. How many tours must be sold to break even?

b. What level of revenue is needed to earn a target income of $42,000?

c. If unit-level costs increase to $20 per tour, what decrease in annual fixed costs must be achieved to keep the same break even point as calculated in requirement (a)?

Reference no: EM13132328

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