Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Filming Voyages Inc. is a company operated by an individual in the summer as a marine life filming operation on the Great Lakes. It operates
Filming Voyages Inc. is a company operated by an individual in the summer as a marine life filming operation on the Great Lakes. It operates a sailing schooner with a full film crew.
Over the last few years, the company has been able to sell their films to a local public television channel for, on average $ each. The shoot time for the films is usually sailing days. The company operates from midMay until midSeptember, with postproduction in September and October. On average, the ship sails days during this period.
'The Canadian' the name of the schooner requires a crew of and is captained by the owner of the company. University students with extensive sailing, filming andor marine biology experience have been willing to work on a per diem basis of $ They are paid only if the ship is cruising. The ship provides nonalcoholic refreshments and a light lunch. These are acquired daily from a local delicatessen and cost, on average, $ per person. The daily operating expenses fuel and miscellaneous supplies average $ per cruise, and the postproduction editing costs are approximately $ per film. The company has a variety of annual expenses including postproduction facilities, maintenance, depreciation, marketing, licenses, etc., totaling approximately $
Required:
Prepare an Excel Workbook or Google Sheets to answer the following questions in a professional manner. Ensure that you are utilizing workbook features including links between spreadsheets, formulas, formatting, graphing Please have a professional cover sheet that includes your name, student ID Faculty Name, Course code and name, A title, Due date.
Compute the revenue and variable costs for each film. Use this to compute the contribution margin per film.
Compute the number of films that 'Canadian' must sell each year to breakeven. Use your knowledge gained in this course to show the different formulas, graphs etc for breakeven analysis.
The owner expects a total return on capital and remuneration of $ Using the concept of 'contribution margin', costvolumeprofit, and target profit calculations, estimate how many films the owner needs to make to reach this objective. Is this a realistic expectation? Add your thoughts, proposals, and recommendations.
Prepare a contribution margin income statement for Filming Voyages Inc. If the owner wishes to adjust or achieve his income goal, what changes can he make? How can these changes be easily estimated and projected to show how these changes affect net income. Use your imagination, and your knowledge of costvolumeprofit analysis. Highlight your ideas by utilizing the various graphing tools in Excel.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started