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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
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 estimatedStep by Step Solution
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