Use this information to compute the following:a. What is the contribution margin per passenger?b. What is the contribution margin ratio?c. Use the unit contribution margin to project operating income if monthly sales total 10,000 passengers.d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $490,000. Flow Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United Statesincluding Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $50 per passenger. Flow Cruiseline'svariable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels(depreciation, salaries, docking fees, and other expenses) is $210,000 per month. The company's relevant rangeextends to 13,000 monthly passengers.d.

given that, selling price per ticket = $50 variable cost per ticket = $20 fixed cost = $210000…

Use this information to compute the following: a. What is the contribution margin per passenger? b. What is the contribution margin ratio? c. Use the unit contribution margin to project operating income if monthly sales total 10,000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $490,000.

Use this information to compute the following: a. What is the contribution margin per passenger? b. What is the contribution margin ratio? c. Use the unit contribution margin to project operating income if monthly sales total 10,000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $490,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

E Perfect Pop spends $1.00 on direct materials, direct labour, and variable manufacturing overhead for every unt (12 pack of soda) it produces Fed manufacturing overhead costs $3 milion per yer The plant which is currently operating at only 70% of capacity, produced 15 million units this year Management plans to operate closer to full capacity next year, producing 20 million units Management does not anticipate any changes in the prices it pays for materials, labour, and manufacturing overhead Requirements Requirement a. What is the current total product cost for the 15 million units), including faed and varable costs? Determine the formula, then calculate the current total product cost milion millon GID Total product costs millon
Assume the following (1) selling price per unit = $30, (2) variable expense per unit = $18, and (3) total fixed expenses = $52,200. Given these three assumptions, the unit sales needed to achieve a target profit of $10,200 is:
Given below in two contributions which option is good and why? Profit=unit sold × unit contribution margin 1.unit sold in excess BEP 2.unit sold in lower of BEP
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,890,000 pages at a price of $0.06 each in the coming year. Product costs include: Direct materials Direct labor Variable overhead Total fixed overhead $0.009 $0.003 $0.001 $84,320 There is no variable selling expense; fixed selling and administrative expenses total $36,000.
Assume the following (1) sales = $200,000 , (2) unit sales = 10,000 , (3) the contribution margin ratio = 37%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? a.) the total fixed expense = $64000 b.) the break-even point is 8,077 units c.) the total variable expense = 74000 d.) the total contribution margin = $126000
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
B\ If the variable cost per unit is (10) and the fixed costs of production are (2000), draw a diagram of the total variable costs, fixed costs, and total costs if production is (100 units, 200, 300, 400 and 500).
The contribution margin is defined as the percent of each sales dollar that remains after satisfying fixed operating costs.
What would be the impact on the targeted overhead rate if the firm decides to boost marketing expenses by RM20,000, according to the plan? What will be the actual cost of items sold?
If the total fixed costs Omr 75000, variable cost per unit Omr 15, contribution margin (CM) Omr 30 and sales 350000 Omr. The Margin of safety with value (OMR) is:
The behavior of the annual maintenance and repair cost in the Bus Transportation Department of the Summerset Public School District is shown by the solid line in the following graph. The dashed line depicts a semivariable-cost approximation of the department’s repair and maintenance cost. Required:1. What is the actual (curvilinear) and estimated (semivariable) cost shown by the graph for each of the following activity levels? Actual Estimateda. 20,000 milesb. 40,000 milesc. 60,000 milesd. 90,000 miles2. How good an approximation does the semivariable-cost pattern provide if the department’s relevant range is 40,000 to 60,000 miles per month? What if the relevant range is 20,000 to 90,000 miles per month?
4. What if the average price per unit increased to $25.50? Recalculate the following: a Contribution margin per unit. Round your answer to the nearest cent. b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places. C. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar. d. Sales revenue needed to achieve a target profit of $240,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.