Hotel accommodations 1,000
Ground transportation 600
Park tickets and other costs 200
Annual fixed costs total $480,000.
a. Calculate the number of package tours that must be sold to break even.
b. Calculate the revenue needed to earn a target operating income of $100,000
c. If fixed costs increase by $24,000, what decrease in variable costs must be achieved to maintain the breakeven point calculated in requirement 1?
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