Problem
Cappadocia Balloon Rides Lid is considering selling hot air balloon rides next year in January 2022.
The following information is relevant:
Lease of the hot air balloons $7,500,000
Hot air balloon rides fee charged to a customer $1,500
Fuel cost per air hot balloon rides $100
Set up cost per air hot balloon rides $200
Task
1. How many balloon rides will Cappadocia Balloon Rides Ltd need to provide in order to break-even?
2. Explain what the consequence/impact will be if the Cappadocia Balloon Rides Ltd has 8,460 hot air balloon rides for January 2022?
3. Explain what the consequence/impact will be if the Cappadocia Balloon workings) Rides Ltd has 4,375 hot air balloon rides for January 2022?
4. Calculate the number of hot air balloon rides required for the Cappadocia Balloon Rides Lid; if the business to earn a desired profit of $3,300,000.