Which quality is a requirement In order for a destination to become a tourism destination area (TDA)?

High Flying takes tourists on helicopter tours of Hawaii. Each tourist buys a $190 ticket; the variable costs average $57 per pe

Dennis_Churaev [7]

Answer:

a. 450 tours per month

b. $850 per month

c. CM Ratio = 0.7

d.

1. Increase

2. Decrease

3. No Effect

Explanation:

The questions are:

a. Compute the average number of tours the company must conduct per month to break even

b. Compute the average sales revenue needed per month to produce a target average profit of $53,200

c. Calculate the contribution margin ratio. (Round your answer to 2 decimal places.)

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.

Solution:

a.

Selling Price = 190

VC = 57

Unit Contribution Margin = $133

Fixed Cost = 718,200 yearly, so monthly is:

718,200/12 = 59,850

Break even occurs when by selling tours they will cover monthly fixed cost of 59,850 [each tour will get 133], thus:

59,850/133 = 450 tours per month

b.

718,200 FC yearly, means, monthly:

718,200/12 = $59,850

Profit needed 53,200, so we would need to cover:

53200+59850 = $113,050

Each tour gives Unit CM to be $133, so we would need revenue of:

Rev = 113,050/133 = $850

c.

Contribution margin ratio is the quotient of difference in sales and var expenses to sales.

So,

CM Ratio = (Sales - Var Exp) / Sales

CM Ratio = (190 - 57) / 190 = 0.7

d.

1.

If the tour prices, decrease, there will be less revenue coming in so the break even point would go higher.

So, break even point will increase

2.

If a salaried clerk is terminated, it will decrease the salary costs of the company. This is decrease the fixed costs of the company (annual wages and salaries), thus it will be easier to cover the new, lower, fixed costs. Thus, the break even point will decrease

3.

A decrease in number of tours sold would proportionally change the variables and other costs and revenues associated. If you look at the calculation above, you will see that "number of tours" won't affect the Break Even Point. Thus, this action will create "no effect".

7 0

3 years ago

What is the correct answer regarding short-run and long-run budgets? a. A short-run budget is generally less than a year in leng

goldfiish [28.3K]

Answer: Option A

Explanation: In simple words, Short run budgets refers to the budgets which are made for a period of less than 12 months and long run budgets are made for a time period greater than one year.

Short run budgets are prepared for some specific assets such as supplying a new customer for one year.

Thus, from the above we can conclude that the correct option is A.

5 0

3 years ago

The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $

sweet [91]

Answer:

The planned purchases are given as $34,500 while the value of OTB is $28,900

Explanation:

The Planned purchases is given as

Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory = Planned Purchases

So here the planned sales are 25000

The planned Reductions are 1500

The End of Month inventory is 88000

The Beginning of Month Inventory is 80000 So the value is given as

25000+1500+88000-80000= Planned Purchases

Planned Purchases =34500

The OTB is given as

OTB=Planned Purchases-Commitment

OTB=34500-5600

OTB=28900

7 0

3 years ago

'seaefcgbjska csag fcbjgwevc' Translate.

Irina18 [472]

Answer:

Hiiiiii

Explanation:

4 0

3 years ago

In regard to the stages (or rounds) of venture capital funding, the stage of funding that occurs when an investment is made very

NemiM [27]

Answer: seed capital

Explanation: In simple words, seed capital refers to the funding under which a venture capitalist invests in a project that involves introducing a completely new product or service.

Usually the projects that involves funding of seed capital have no physical existence or assets. These projects are just in from of idea and the venture capitalist feels that it can be a success so he invest in it. Generally, under such projects venture capitalist takes majority of capital in his hold for fully enjoying the potential benefit.

3 0

3 years ago