You are part of a group of owners who wish to invest money into a new tour
Question:
You are part of a group of owners who wish to invest money into a new tour business. Use the information below to calculate the required information asked of you for this question, using the Bottom-Up Pricing method.
*Note*
Only find the answer to the single question being asked of you in this question; do not complete all the Bottom-Up Pricing steps. Previous steps information is provided below to assist you.
Calculate the estimated total variable costs of the business. Round to the nearest dollar.
Need problem-solving process
Revenue | $447235 |
New Equipment Value | $157392 |
Loan Amount | $130925 |
Interest Rate % | 10% |
Food Cost % | 19% |
Variable Wage % | 22% |
Other Variable Expenses % | 22% |
Maximum # of Tour Guests per Tour | 33 |
Average Occupancy % of Tours | 79% |
# of Tours per month | 21 |
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany