General Accounting question give answer Mary is a travel agent. She intends to sell her customersa special round-trip airline ticket package. She is able topurchase the package from the airline carrier for $170each. The round-trip tickets will be sold for $200 eachand the airline intends to reimburse Mary for any unsoldticket packages. Fixed costs include $5,140 in advertisingcosts. For every 135 round-trip airline ticket packagesold, operating income will increase byA) $34,000B) $27,000C) $4,050D) $22,950

Step 1: Determine the Revenue per ticket packageStep 2: Determine the Cost per ticket package…

Answered: Mary is a travel agent. She intends to…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 42P

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Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $10,780. The booth will be open 22 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $180 per package. She will continue to sell the existing product, EZRecords, which costs $94 per package. Ms. Ortega believes that the salesperson will spend approximately 12 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 78 units of EZRecords and 59 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 205 units of EZRecords and 110 units of ProOffice. Note: For all requirements, round "Cost per unit" to 2 decimal…
Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 150 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 10,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? a. 29 packages b. 200 packages c. 50 packages d. 67 packages
6. Kristine is distributor of brass picture frames for P45. For 2022, she plans to purchase for P30 each and sell them for P45 each. Kristine's fixed costs are expected to be P240,000. Kristine's only other costs will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery , and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristine ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristine sells 40,000 picture frames in 1,000 shipments in 2022, what is Kristine's operating income for 2022?
Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 140 each. The round-trip tickets will be sold for OMR 172 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 4,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? O a. 125 packages O b. 29 packages Oc. 24 packages O d. 13 packages
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $12,690. The booth will be open 27 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $180 per package. She will continue to sell the existing product, EZRecords, which costs $103 per package. Ms. Ortega believes that the salesperson will spend approximately 17 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 72 units of EZRecords and 45 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 202 units of EZRecords and 101 units of ProOffice. Note: For all requirements, round "Cost per unit" to 2 decimal…
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $10,660. The booth will be open 26 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $190 per package. She will continue to sell the existing product, EZRecords, which costs $103 per package. Ms. Ortega believes that the salesperson will spend approximately 16 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 73 units of EZRecords and 59 units of ProOffice.
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Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin’s fixed costs are expected to be P 240,000. Kristin’s only other cost will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristin sells 40,00 picture frames in 800 shipments in 20X4, what is the kristin’s operating income for 20X4? a. P 246,000 b. P 325,000 c. P 211,000 d. P 312,000
Kristin is a distributor of bras picture frames. For 20X4, she plans to purchase for P30 each and sell them for P45 each. Kristin’s fixed costs are expected to be P 240,000. Kristin’s only other cost will be variable costs of P60 per shipment for preparing the invoice and delivery documents, organizing the delivery, and following up for collecting accounts receivable. The P60 cost will be incurred each time Kristin ships an order of picture frames, regardless of the number of frames in the order. Suppose Kristin anticipates making 500 shipments in 20X4, how many picture frames must Kristin sell to break-even in 20X4 a. 18,000 b. 12,000 c. 14,000 d. 16,000
Janet Garcia is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $8,700. The booth will be open 29 hours during the trade show. Ms. Garcia also plans to add a new product line, ProOffice, which will cost $190 per package. She will continue to sell the existing product, EZRecords, which costs $93 per package. Ms. Garcia believes that the salesperson will spend approximately 19 hours selling EZRecords and 10 hours marketing ProOffice. Required: a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 86 units of EZRecords and 58 units of ProOffice. (Round "Cost per unit" answers to 2 decimal places.) EZRecords ProOffice Total cost of sales Cost per unit b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 199 units…
After three years in the cake shop business, Gloria has decided she can now afford to advertise. An advertising package would cost her $30,416 for one year. Assuming advertising is a fixed cost and her unit contribution is now $8.75, how many additional cakes would she need to sell to make the advertising package worthwhile? That is, how many additional cakes does she need to sell to pay for the advertising and breakeven. Round to the nearest whole number.
Please solve C, D, and E.

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