Contribution Income Statement, Cost$-$Volume$-$Profit Graph, and Taxes

Jail and Sail: Alcatraz Tour and Cruise provides sunset sightseeing tours of Alcatraz and the San Francisco Bay. Tickets cost $$140$ each. Assume $2,860$ customers were served in July.

Variable Costs per Customer Fixed Costs per Month

Admission fees $$60$ Operations $$65,000$

Overhead $25$ Selling and administration $16,250$

Hors d$$oeuvres $15$

Selling and administrative $2$

Total $$102$ Total $$81,250$

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.

c$.$ Determine Jail and Sail$$s margin of safety in units for July.

d$.$ Determine the unit sales required for a monthly after$-$tax profit of $$26,000.$

Note: Round your final answer up to the nearest whole unit $($for example, round $41\mathrm{.}2$ to $42).$

Answer rating: 100% (QA)

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