What is the margin of safety in terms of number of people, Accounting Basics

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What is the margin of safety in terms of number of people

Rainbow Tours gives walking tours of Springfield. Rainbow charges $40 per person for the tour and incurs $16 in in variable costs for labor, drinks, and maps. The monthly fixed costs for Rainbow tours are $3600.

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

B. Rainbow Tour'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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Accounting Basics: What is the margin of safety in terms of number of people

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Accounting Basics: What is the margin of safety in terms of number of people

Reference No:- TGS090075

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