Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me find the solution as soon as possible. Sailing Voyages, Inc. is a company operated by an individual as a summer tourist attraction

image text in transcribed

please help me find the solution as soon as possible.

Sailing Voyages, Inc. is a company operated by an individual as a summer tourist attraction on the Great Lakes. It operates a sailing schooner offering day cruises for individuals and groups. Over the last few years, the average number of tourists per cruise was 30 . The average charge per person for the cruise, including group discounts, was $100. The company operates from mid-May until mid-September. On average, the ship sails 100 days during this period. The Canadian (the name of the schooner) requires a crew of 6 and is captained by the owner of the company. University students with extensive sailing experience have been willing to work on a per diem basis of $100. They are paid only if the ship is cruising. The ship provides non-alcoholic refreshments and a light lunch. These are acquired daily from a local delicatessen and cost, on average, daily operating expenses, fuel and miscellaneous supplies average $50 a cruise. variety of annual expenses including: maintenance, depreciation, marketing, lic 66/119 approximately $85,000. REQUIRED 1. Compute the revenue and variable expenses for each cruise. 2. Compute the number of cruises the Canadian must have each year to break-even. Is there an equation that can be used to determine this number? 3. The owner expects a total return on capital and remuneration for being the captain of $125,000. Using the concept of "contribution margin" and a cost-volume-profit notion, estimate how many cruises the Canadian needs to make to reach this objective? Is this a realistic expectation? 4. Prepare a contribution margin income statement for Sailing 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Fraud Detection And Prevention Audit Expert System

Authors: Titus Oniyilo

1st Edition

136564345X, 978-1365643453

More Books

Students also viewed these Accounting questions

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago

Question

State the uses of job description.

Answered: 1 week ago