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Jail and Sail: Alcatraz Tour and Cruise provides sunset sightseeing tours of Alcatraz and the San Francisco Bay. Tickets cost $140 each. Assume 3,520 customers
Jail and Sail: Alcatraz Tour and Cruise provides sunset sightseeing tours of Alcatraz and the San Francisco Bay. Tickets cost $140 each. Assume 3,520 customers were served in July. Variable Costs per Customer Fixed Costs per Month Admission fees $60 Operations $80,000 Overhead 25 Selling and administration 20,00 Hors d'oeuvres 15 Selling and administrative Total $102 Tota $100,000 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. Note: Round your answers to the nearest whole dollar. Jail and Sail: Alcatraz Tour and Cruise Contribution Income Statement For the Month of July Sales 0 Less variable costs: Admission fees Overhead Hors d'oeuvres Selling and administrative Contribution margin 0 Less fixed costs: Operations 0 Selling and administrative Before-tax profit Income taxes After-tax profit 5 b. Determine Jail and Sail's monthly break-even point in units. Note: Round your answer up to the nearest whole unit (for example, round 41.2 to 42). 0 units c. Determine Jail and Sail's margin of safety in units for July. 0 units d. Determine the unit sales required for a monthly after-tax profit of $32,000. Note: Round your final answer up to the nearest whole unit (for example, round 41.2 to 42). units
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