1) | |
Fixed Costs: | |
Ship and Crew | $220,000 |
Initial Advertising | $65,000 |
Administrative Expenses | $10,000 |
Total Fixed Costs | $295,000 |
Variable Costs: | |
Food, etc. Per Person (200 * $200) | $40,000 |
Total Variable Costs | $40,000 |
2-a) | |
Selling price per person | $1,550 |
Less: Variable cost per person | ($200) |
Contribution Margin Per Person (a) | $1,350 |
Total Fixed Costs (b) | $295,000 |
Break-even point in number of persons/guests (b/a) | 219 |
3-a) | |
$6,000 (20 guests): | |
Current Fixed Costs | $295,000 |
Add: Additional Fixed Costs | $6,000 |
Total Fixed Costs (a) | $301,000 |
Contribution Margin Per Person (b) | $1,350 |
Break-even point in number of persons/guests (a/b) | 223 |
$15,000 (40 guests): | |
Current Fixed Costs | $295,000 |
Add: Additional Fixed Costs | $15,000 |
Total Fixed Costs (a) | $310,000 |
Contribution Margin Per Person (b) | $1,350 |
Break-even point in number of persons/guests (a/b) | 230 |
Therefore, additional fixed costs of $15,000 would give high break-even point of 230 guests compare with $6,000. | |
4) | |
Expected profit to achieve (a) | $26,000 |
Total Fixed Costs (b) | $295,000 |
Contribution Margin Per Person (c ) | $1,350 |
Passengers required to achieve the target profit of$26,000 [(a + b)/c] | 238 |
Advertising campaign of $6,000 for 20 additional guests is necessary because it will cost less compare with $15,000 advertising campaign with 40 guests. |
This are the formulas and breakdown calculations for health cruise case ( example) ⬇️ Below is...
llar sales and number of he has calculated the e. If you were the general manager at the Urlau propu 6. Lynn Hoffman is the owner of the Sky View restaurant. She is interested in determining dollar sales and guests needed to breakeven and to generate her desired profits. From her financial records, she has cale following information: Check average (selling price) Variable cost per unit (guest) Annual fixed costs $16.50 $5.60 $180,000 a. Complete the following grid, and determine...
Pacific Cruises provides standard riverboat cruises for tourists on the Hawkesbury River. The average cruise has 90 passengers on board. Each passenger pays $100 for a day’s cruising. The riverboat cruises 120 days each year in meeting current demand. There are 14 crew who are each paid an average of $130 per cruise. The crew is paid only when the boat sails. Other variable costs are for refreshments, which average $20 per passenger per cruise, and fuel which averages $400...
Answer 4-c and 5 please Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: $ 17.00 20.50 8.50 46.00 $ Variable costs per ice cream maker Direct labor...
Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year. $ 13.50 14.50 6.00 34.00 $ Variable costs per Ice cream maker Direct labor Direct materials Variable overhead Total...
Connelly, Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Since her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: Variable costs per ice cream maker Direct labor Direct materials Variable overhead $ 17.00 20.50 8.50 Total variable costs $...
Exercise 9-21 Breakeven Planning; Profit Planning (LO 9-2, 9-3] Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan DeJaney, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: 17.00 20.50 8.50 46.ee $ Variable costs per ice cream maker...
Answer questions 1 through 5 Connelly Inc. Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to! maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year $ 20.00 24.00 10.00 54.00 $ Variable costs per ice cream maker...
Answer questions 1 through 5 Connelly Inc. Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years. Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to! maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year $ 20.00 24.00 10.00 54.00 $ Variable costs per ice cream maker...
Connelly Inc., a manufacturer of quality electric ice cream makers, has experienced a steady growth in sales over the past few years Because her business has grown, Jan De Janey, the president, believes she needs an aggressive advertising campaign next year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year: $ eBook 17.00 20.50 8.50 46.00 $ Variable costs per ice cream maker Direct labor Direct materials Variable overhead...
Question 3 - Show calculations clearly: [10 marks] A factory manufacturing industrial machine parts has been established with the capacity to produce 500 machine parts per annum. The variable costs of each machine part is as follows: direct materials Dhs.100, direct labour Dhs.50 and direct overheads is 100% of direct labour. Each machine is sold for Dhs. 250. Fixed overheads are Dhs.12,000 per annum. a) Calculate: Break-even point in units Break-even point in sales revenue P/V ratio b) If the...