Solved: Rainbow tourss owner believes that 175 people a month will, Cost Accounting

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Rainbow tourss owner believes that 175 people a month will

Rainbow Tours gives walking tours of Springfield. Rainbow charges $40 per person for the tour and incurs $16 in variable costs for labor, drinks, and maps. The monthly fixed costs for Rainbow Tours are $3,600.

Required

a. How many tours must Rainbow sell every month to break even?

b. Rainbow Tours's owner believes that 175 people a month will sign up for the walking tour. What is the margin of safety in terms of the number of people signing up for the tour?

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Cost Accounting: Rainbow tourss owner believes that 175 people a month will

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Cost Accounting: Rainbow tourss owner believes that 175 people a month will

Reference No:- TGS0820727

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