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15-29. Contribution Income Statement, Cost-Volume-Profit Graph, and Taxes New York Tours (NYT) provides daily sightseeing tours that include transportation, admission to selected attractions, and lunch.
15-29. Contribution Income Statement, Cost-Volume-Profit Graph, and Taxes New York Tours (NYT) provides daily sightseeing tours that include transportation, admission to selected attractions, and lunch. Ticket prices are $85 each. During June 2017, NYT provided 3,000 tours. Variable Costs per Customer Admission fees ... Lunch ...... Overhead... Selling and administrative . Total .... $30 17 10 8 Fixed Costs per Month Operations ........... Selling and administration ... $25,000 15,000 $65 Total ..... $40,000 NYT is subject to an income tax rate of 40 percent. REQUIRED a. Prepare a contribution income statement for June. b. Determine NYT's monthly break-even point in units. c. Determine NYT's margin of safety for June 2017
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