Answer to Question #57110 in Microeconomics for rw

Question

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?