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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.
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 4,400 customers were served in July. Variable Costs per Customer Fixed Costs per Month Admission fees $60 Operations $100,000 Overhead 25 Selling and administration 25,000 Hors doeuvres 15 Selling and administrative 2 Total $102 Total $125,000 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. Jail and Sail: Alcatraz Tour and Cruise Contribution Income Statement For the Month of July Sales Less variable costs: Admission fees Overhead Hors doeuvres Selling and administrative Contribution margin Less fixed costs: Operations Selling and administrative Before-tax profit Income taxes After-tax profit b. Determine Jail and Sails monthly break-even point in units. Note: Round your answer up to the nearest whole unit (for example, round 41.2 to 42). Answer units c. Determine Jail and Sails margin of safety in units for July. Answer units d. Determine the unit sales required for a monthly after-tax profit of $40,000. Note: Round your final answer up to the nearest whole unit (for example, round 41.2 to 42). Answer units
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