Hamilton Tours offers small group tours of the local area. The cost of a tour is $77 per person and the variable costs are $18 per person. Fixed costs for the quarter are $155,760. 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 40 percent. How many tours does the sales director plan to sell next quarter?

Hamilton Tours offers small group tours of the local area. The cost of a tour is $77 per person and the variable costs are $18 per person. Fixed costs for the quarter are $155,760. 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 40 percent. How many tours does the sales director plan to sell next quarter?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 20E

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