Cappadocia Balloon Rides Ltd is considering selling hot air balloon rides next year inJanuary2022. The following information
Question:
Cappadocia Balloon Rides Ltd is considering selling hot air balloon rides next year in January 2022.
The following information is relevant:
Lease of the hot air balloons $7,500,000
Hot air balloon rides fee charged to a customer$1,500
Fuel cost per air hot balloon rides$100
Set up cost per air hot balloon rides$200
REQUIRED:
a) How many balloon rides will Cappadocia Balloon Rides Ltd need to provide in order tobreak-even?
(show workings)
(2 marks)
b) Explain what the consequence/impact will be if the Cappadocia Balloon Rides Ltd has 8,460 hot air balloon rides for January 2022?
(show workings)
(2 marks)
c) Explain what the consequence/impact will be if the Cappadocia Balloon Rides Ltd has 4,375 hot air balloon rides for January 2022?
(show workings)
(2 marks)
d) Calculate the number of hot air balloon rides required for the Cappadocia Balloon Rides Ltd, if the business to earn a desired profit of $3,300,000. (show workings)
(2 marks)
QUESTION2(7 marks)
From the following data from Nick Scali Furniture, calculate the receipts of accounts receivable for July, August and September 2022.
ACTUAL | ESTIMATED | ||||
May | June | July | August | September | |
Credit Sales | $160,000 | $85,000 | $112,500 | $87,400 | $163,200 |
Credit sales are normally settled according to the following pattern:
25 per cent in the month of sale, 40 percent in the month following the sale and the remainder in the second month following the sale.
Suggestion: Student can use this template to answer this question.
JULY 2022 | AUGUST 2022 | SEPTEMBER 2022 | |||
TOTAL | |||||
Thermodynamics An Engineering Approach
ISBN: 978-0073398174
8th edition
Authors: Yunus A. Cengel, Michael A. Boles