Below is the income statement for a taxi service based on the following information: Price per trip $50 Total number of trips 7,205 Required Breakeven point in units Break even point in dollars Breakeven price Please show all workings Revenue Income from golf cart transportation 360,250 Direct Expenses Fuel 6,240 Golf Cart Repairs and Maintenance 9,360 Total Cost of Sales 15,600 Gross Profit 344,650 Operating Expenses Insurances 10,000 Licence 9,650 Marketing 3,000 Uniforms 9,000 Cleaning and sanitisation 3,000 Professional Fees 6,000 Wages 93,600 Telephone and communication 14,400 Rent 12,000 Depreciation 94,860 255,510 Total Operating Expenses Finance Charges Bank charges 860 Loan Interest 50,916 51,776 Profit before tax 37,364 Tax (25%) 9,341 Net profit after tax 28,023
Below is the income statement for a taxi service based on the following information: Price per trip $50 Total number of trips 7,205 Required Breakeven point in units Break even point in dollars Breakeven price Please show all workings Revenue Income from golf cart transportation 360,250 Direct Expenses Fuel 6,240 Golf Cart Repairs and Maintenance 9,360 Total Cost of Sales 15,600 Gross Profit 344,650 Operating Expenses Insurances 10,000 Licence 9,650 Marketing 3,000 Uniforms 9,000 Cleaning and sanitisation 3,000 Professional Fees 6,000 Wages 93,600 Telephone and communication 14,400 Rent 12,000 Depreciation 94,860 255,510 Total Operating Expenses Finance Charges Bank charges 860 Loan Interest 50,916 51,776 Profit before tax 37,364 Tax (25%) 9,341 Net profit after tax 28,023
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Below is the income statement for a taxi service based on the following information:
Price per trip $50
Total number of trips 7,205
Required
Breakeven point in units
Break even point in dollars
Breakeven price
Please show all workings
| Revenue | ||
| Income from golf cart transportation | 360,250 | |
| Direct Expenses | ||
| Fuel | 6,240 | |
| Golf Cart Repairs and Maintenance | 9,360 | |
| Total Cost of Sales | 15,600 | |
| Gross Profit | 344,650 | |
| Operating Expenses | ||
| Insurances | 10,000 | |
| Licence | 9,650 | |
| Marketing | 3,000 | |
| Uniforms | 9,000 | |
| Cleaning and sanitisation | 3,000 | |
| Professional Fees | 6,000 | |
| Wages | 93,600 | |
| Telephone and communication | 14,400 | |
| Rent | 12,000 | |
| 94,860 | 255,510 | |
| Total Operating Expenses | ||
| Finance Charges | ||
| Bank charges | 860 | |
| Loan Interest | 50,916 | 51,776 |
| Profit before tax | 37,364 | |
| Tax (25%) | 9,341 | |
| Net profit after tax | 28,023 |
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