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Grand Company provides tours of the Grand Canyon. The following information is available for July: Ticket price $ 1 4 0 . 0 0 Tickets

Grand Company provides tours of the Grand Canyon. The following information is available for July:
Ticket price $140.00
Tickets sold 2,200
Variable costs per customer Fixed costs per month
Park fees $60.00 Operations $50,000
Overhead $25.00 Selling and Administration $12,500
Hors d'oeuvres $15.00
Selling and Administrative $2.00
Total $102.00 $62,500
Tax rate 20%
Required:
a) Prepare a contribution income statement for July.
b) Determine Grand's monthly break-even point in tickets (units).
c) Determine Grand's safety margin, in tickets, for July.
d) Determine the number of tickets that must be sold for an after tax profit of $20,000.
e) Prepare a cost-volume-profit graph (include a revenue, total cost, variable cost and fixed cost line). Vertical axis should have a maximum value of $630,000. Horizonal axis should have a maximum value of 4,500 tickets.

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