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    Wildlife Escapes Generates Average Revenue

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

    Annual fixed costs $480,000

    Wildlife Escapes generates average revenue of $4,000 per person on its five-day tours of top wildlife parks in Kenya. The variable costs per person are

    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 $100,000.
    3. If fixed costs increased by $24,000, what decrease in variable cost per person must be achieved to maintain the breakeven point in requirement 1?

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    https://brainmass.com/business/accounting/wildlife-escapes-generates-average-revenue-247755

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

    Annual fixed costs $480,000

    Wildlife Escapes generates average revenue of $4,000 per person on its five-day tours of top wildlife parks in Kenya. The variable ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate the number of package tours that must be sold to break even.

    $2.19

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