Western Spirit is a sport and recreation company focusing on mountain biking week excursions during the...

 

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Western Spirit is a sport and recreation company focusing on mountain biking week excursions during the Spring-Fall seasons from April - November. In 2021 they had a banner year as Covid-19 had little effect on their business as it is primarily and outdoor style experiences for their guests. They sell 5-day packages from $1400- $3,200 per person. With their 2021 total revenues of $1,200,600 they increased their overall sales by 5%! They company employs 8 full time staff that are directly involved in running each weekly excursion as guides and counselors. This labor cost total for all staff was 288,000 for the year. Part of the package for the guests is an all-inclusive meal plan that feeds them on their 5-day trips. Western Spirit uses many sources for their food and that cost came to $148,000. Booze can only be brought in by the guest as Western Spirit did not have a liquor resale license. AS they were worried about bookings during Covid they did a big media campaign at a cost of $50,000. And it worked. All their other expense for repairs to bikes, fuel, vehicle maintenance, insurance, cell phone plans, tents, and their office/warehouse rent came to $75,550 for the year. What is the Gross Profit for Western Spirit? What is the Total in Operating Costs for Western Spirit? Western Spirit is a sport and recreation company focusing on mountain biking week excursions during the Spring-Fall seasons from April - November. In 2021 they had a banner year as Covid-19 had little effect on their business as it is primarily and outdoor style experiences for their guests. They sell 5-day packages from $1400- $3,200 per person. With their 2021 total revenues of $1,200,600 they increased their overall sales by 5%! They company employs 8 full time staff that are directly involved in running each weekly excursion as guides and counselors. This labor cost total for all staff was 288,000 for the year. Part of the package for the guests is an all-inclusive meal plan that feeds them on their 5-day trips. Western Spirit uses many sources for their food and that cost came to $148,000. Booze can only be brought in by the guest as Western Spirit did not have a liquor resale license. AS they were worried about bookings during Covid they did a big media campaign at a cost of $50,000. And it worked. All their other expense for repairs to bikes, fuel, vehicle maintenance, insurance, cell phone plans, tents, and their office/warehouse rent came to $75,550 for the year. What is the Gross Profit for Western Spirit? What is the Total in Operating Costs for Western Spirit?

Answer rating: 100% (QA)

To calculate the Gross Profit for Western Spirit you can use the following formula Gross Pro... View the full answer