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Problem - Hamilton Tours offers small group tours of the local area. The cost of a tour is $125 per person and the variable costs are $50 per person. Fixed costs for the quarter are $196,800.
Required -
a. What is the quarterly break-even level for Hamilton Tours?
b. Based on the sales director's forecast for the following quarter and using the price and cost information on the tours given, the margin of safety percentage is 36 percent. How many tours does the sales director plan to sell next quarter?
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