Answer to Question #57110 in Microeconomics for rw
Tippalee Ventures Inc. provides helicopter tours of the wilderness. The fixed monthly cost for the helicopter, gear, and airport space is $42,500. The variable cost per tour is $6,500. The helicopter tours sell for $3,500 per person, and the helicopter seats three customers. Assuming every helicopter is filled to capacity, what is the break-even volume for the company? What is the break-even volume if each helicopter only carries two customers?
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