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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 2,200 customers were served in July. Variable Costs per Customer Fixed Costs per Month Admission fees . . $60 Operations . . . . . . . . . . . . . . $50,000 Overhead . . . 25 Selling and administration . . . . . . . . 12,500 Hors d'oeuvres . . 15 Selling and administrative. . . . . 2 Total . . . . . . $102 Total . . . $62,500 Jail and Sail is subject to an income tax rate of 21%. Required a. Prepare a contribution income statement for July. b. Determine Jail and Sail's monthly break-even point in units. 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 $20,000. e. Prepare a cost-volume-profit graph. Label the horizontal axis in units with a maximum value of 4,000. Label the vertical in dollars with a maximum value of $600,000. Draw a vertical line on the
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