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Hammerhead Charters runs fishing trips out of the local port. Hammerhead charges $60 per trip for a half-day trip. Variable costs for Hammerhead total $25
Hammerhead Charters runs fishing trips out of the local port. Hammerhead charges $60 per trip for a half-day trip. Variable costs for Hammerhead total $25 per trip and the fixed costs are $13,650 per month. Hammerhead is subject to an income tax rate of 20 percent.
Required:
a. How many trips must Hammerhead sell to break even?
b. How many trips must Hammerhead sell to earn a monthly operating profit of $17,500 after taxes?
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