Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20 days a month and only makes one trip on the day It operates. Price and cost Information for the Muncey follows: Selling price per passenger-trip Variable cost per passenger-trip Fixed cost per month Income tax rate 425 $ $ 175 $ 75,000 24% A passenger-trip is considered to be one passenger per trip. Required: a. Compute Muncey's break-even point in number of passenger-trips per month. b. How many passenger-trips per month must Muncey sell to earn $10,450 after taxes?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter
package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20
days a month and only makes one trip on the day It operates. Price and cost Information for the Muncey follows:
Selling price per passenger-trip
Variable cost per passenger-trip
Fixed cost per month
Income tax rate
$ 425
$ 175
$ 75,000
24%
A passenger-trip is considered to be one passenger per trip.
Required:
a. Compute Muncey's break-even point in number of passenger-trips per month.
b. How many passenger-trips per month must Muncey sell to earn $10,450 after taxes?
Transcribed Image Text:Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20 days a month and only makes one trip on the day It operates. Price and cost Information for the Muncey follows: Selling price per passenger-trip Variable cost per passenger-trip Fixed cost per month Income tax rate $ 425 $ 175 $ 75,000 24% A passenger-trip is considered to be one passenger per trip. Required: a. Compute Muncey's break-even point in number of passenger-trips per month. b. How many passenger-trips per month must Muncey sell to earn $10,450 after taxes?
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