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 revenue needed to earn a target operating income of $102,000.

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 revenue needed to earn a target operating income of $102,000.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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