Jail and Sail: Alcatraz Tour and Cruise provides sunset sightseeing tours of Alcatraz and the San Francisco
Question:
Jail and Sail: Alcatraz Tour and Cruise provides sunset sightseeing tours of Alcatraz and the San Francisco Bay. Tickets cost $140 each. Assume 3,300 customers were served in July.
Variable Costs per Customer | Fixed Costs per Month | ||
---|---|---|---|
Admission fees | $60 | Operations | $75,000 |
Overhead | 25 | Selling and administration | 18,750 |
Hors d'oeuvres | 15 | ||
Selling and administrative | 2 | ||
Total | $102 | Total | $93,750 |
Jail and Sail is subject to an income tax rate of 21%.
Required
a. Prepare a contribution income statement for July.
Note: Do not use a negative sign with your answers in the statement below.
Note: Round your answers to the nearest whole dollar.
Jail and Sail: Alcatraz Tour and Cruise | ||
---|---|---|
Contribution Income Statement | ||
For the Month of July | ||
Sales | Answer | |
Less variable costs: | ||
Admission fees | Answer | |
Overhead | Answer | |
Hors d'oeuvres | Answer | |
Selling and administrative | Answer | Answer |
Contribution margin | Answer | |
Less fixed costs: | ||
Operations | Answer | |
Selling and administrative | Answer | Answer |
Before-tax profit | Answer | |
Income taxes | Answer | |
After-tax profit | Answer |
b. Determine Jail and Sail's monthly break-even point in units.
Note: Round your answer up to the nearest whole unit
c. Determine Jail and Sail's margin of safety in units for July.
Answer units
d. Determine the unit sales required for a monthly after-tax profit of $30,000.
Note: Round your final answer up to the nearest whole unit