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Q1. Javelin Cycling Vacations Ltd. offers cycling tours in Canada and France. Each year a single tour is offered. For 2022, the company is offering a tour of the Continental Divide. Following is an estimate of the revenues and costs for this tour: "Javelin will incur a cost of 5% of the salaries in severance costs when employees are terminated. 2 Promotion costs have already been incurred. 3 Office and equipment insurance is paid in advance of the commencement of the tour. "Insurance is payable only if the tour is confirmed. 5 These expenses are for booking accommodations, arranging meals, and providing communication services during the tour. Required: -a. Compute the net operating income (loss) in both cases - when the tour is offered, and the tour is not offered. (Negative amounts should be indicated with a minus sign.) 1-b. Should the tour be offered? Yes No 2. Calculate the minimum revenue required to justify offering the tour. Q1. Javelin Cycling Vacations Ltd. offers cycling tours in Canada and France. Each year a single tour is offered. For 2022, the company is offering a tour of the Continental Divide. Following is an estimate of the revenues and costs for this tour: 1 Javelin will incur a cost of 5% of the salaries in severance costs when employees are terminated. 2 Promotion costs have already been incurred. 3 Office and equipment insurance is paid in advance of the commencement of the tour. 4 Insurance is payable only if the tour is confirmed. 5 These expenses are for booking accommodations, arranging meals, and providing communication services during the tour. Required: 1-a. Compute the net operating income (loss) in both cases - when the tour is offered, and the tour is not offered. (Negative amounts should be indicated with a minus sign.) 1-b. Should the tour be offered? Yes No 2. Calculate the minimum revenue required to justify offering the tour

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