Seventh Heaven takes tourists on helicopter tours of the Canadian Rockies. Each tourist buys a $150 ticket; the variable costs average $60 per person. Seventh Heaven has annual fixed costs of $702,000.
Required:
A. How many tours must the company conduct in a month to break even?
B. Compute the sales revenue needed to produce a target net profit of $36,000 per month.
C. Calculate the contribution margin ratio.
D. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point.1. A decrease in tour prices.2. The termination of a salaried clerk (no replacement is planned).3. A decrease in the number of tours sold.

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The Answer of Seventh Heaven takes tourists on helicopter tours of the Canadian Rockies. Each tourist buys a $150 ticket; the variable costs average $60 per person. Seventh Heaven has annual fixed costs of $702,000.
Required:
A. How many tours must the company conduct in a month to break even?
B. Compute the sales revenue needed to produce a target net profit of $36,000 per month.
C. Calculate the contribution margin ratio.
D. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point.1. A decrease in tour prices.2. The termination of a salaried clerk (no replacement is planned).3. A decrease in the number of tours sold.

Seventh Heaven Takes Tourists on Helicopter Tours of the Canadian