Calculator Problem 4-13 Travel On Inc. sells luggage. They sell a duffle bag, a carry-on suitcase...

  

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Calculator Problem 4-13 Travel On Inc. sells luggage. They sell a duffle bag, a carry-on suitcase and a deluxe suitcase. The price and variable cost for each type of luggage is listed below. Duffle bag. Carry-on Deluxe Price $100 $180 $300 Variable Cost $25 $40 $120 The total fixed costs for Travel On Inc. equals $60,000. For every 8 duffle bags Travel On Inc sells it sells 3 carry-on suitcases and 1 deluxe suitcase. Required: A. Calculate the package contribution margin. X B. Calculate the break-even point in units for duffle bags, carry-on suitcases and deluxe suitcases. Duffle bags Carry-on suitcases Deluxe suitcases Break-even point in units C. If Travel On Inc. has a target income for the coming year of $300,000, how many packages will the company have to sell? packages D. Based on your answer in Part C, prepare a contribution margin income statement for the coming year. Travel On Inc. Contribution Margin Income Statement For the Coming Year Sales Total Variable Expenses ✓ Total Contribution Margin ✓ Total Fixed Expense ✓ Operating Income Foodback Check My Work Partially correct E. What is the company's margin of safety in packages? Feedback Check My Work Incorrect Calculator Problem 4-13 Travel On Inc. sells luggage. They sell a duffle bag, a carry-on suitcase and a deluxe suitcase. The price and variable cost for each type of luggage is listed below. Duffle bag. Carry-on Deluxe Price $100 $180 $300 Variable Cost $25 $40 $120 The total fixed costs for Travel On Inc. equals $60,000. For every 8 duffle bags Travel On Inc sells it sells 3 carry-on suitcases and 1 deluxe suitcase. Required: A. Calculate the package contribution margin. X B. Calculate the break-even point in units for duffle bags, carry-on suitcases and deluxe suitcases. Duffle bags Carry-on suitcases Deluxe suitcases Break-even point in units C. If Travel On Inc. has a target income for the coming year of $300,000, how many packages will the company have to sell? packages D. Based on your answer in Part C, prepare a contribution margin income statement for the coming year. Travel On Inc. Contribution Margin Income Statement For the Coming Year Sales Total Variable Expenses ✓ Total Contribution Margin ✓ Total Fixed Expense ✓ Operating Income Foodback Check My Work Partially correct E. What is the company's margin of safety in packages? Feedback Check My Work Incorrect

Answer rating: 100% (QA)

In the given question it is given that Price 100 180 300 Variable cost 25 40 120 The total fixed cos... View the full answer