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Lifetime Escapes generates average revenue of $7,500 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows:Airfare                                              $1,600 Hotel accommodations                     3,100 Meals                                                    600 Ground transportation                         300 Park tickets and other costs                 700 Total                                                 $6,300 Annual fixed costs total $570,000. Q. Calculate the number of package tours that must be sold to break even.

Lifetime Escapes generates average revenue of $7,500 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows:Airfare                                              $1,600 Hotel accommodations                     3,100 Meals                                                    600 Ground transportation                         300 Park tickets and other costs                 700 Total                                                 $6,300 Annual fixed costs total $570,000. Q. Calculate the number of package tours that must be sold to break even.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
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Lifetime Escapes generates average revenue of $7,500 per person on its 5-day package tours to wildlife parks in Kenya. The variable costs per person are as follows:
Airfare                                              $1,600

Hotel accommodations                     3,100

Meals                                                    600

Ground transportation                         300

Park tickets and other costs                 700

Total                                                 $6,300

Annual fixed costs total $570,000.

Q. Calculate the number of package tours that must be sold to break even.

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