Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use this information to compute the following: Luxury Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States

image text in transcribedimage text in transcribed

Use this information to compute the following: Luxury Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $50 per passenger. Luxury Cruiseline's variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. The company's relevant range extends to 18,000 monthly passengers. a. What is the contribution margin per passenger? b. What is the contribution margin ratio? c. Use the unit contribution margin to project operating income if monthly sales total 15,000 passengers. d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $520,000. a. What is the contribution margin per passenger? First identify the formula, then compute the contribution margin per passenger. = Contribution margin per passenger = Fixed cost per passenger Sales price per passenger Variable cost per passenger Juda Company manufactures and sells a single product. The company's sales and expenses for last year follow: B (Click the icon to view the information.) Read the requirements. Requirement 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: a. What is the total contribution margin? The total contribution margin is Requirements Data Table Total Per Unit % Sales $ 115,000 $ 50 ? ? ? ? Variable expenses 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: a. What is the total contribution margin? b. What is the total variable expense? c. How many units were sold? d. What is the per-unit variable expense? e. What is the per-unit contribution margin? 2. Answer the following questions about breakeven analysis: a. What is the breakeven point in units? b. What is the breakeven point in sales dollars? 3. Answer the following questions about target profit analysis and safety margin: a. How many units must the company sell in order to earn a profit of $58,000? b. What is the current margin of safety in units? c. What is the margin of safety in sales dollars? d. What is the margin of safety in percentage? ? ? Contribution margin ? Fixed expenses 11,500 $ 46,000 Operating income

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

Benfords Law

Authors: Mark J. Nigrini

1st Edition

1118152859, 9781118152850

More Books

Students also viewed these Accounting questions

Question

Why are robots a major component of a flexible manufacturing cell?

Answered: 1 week ago

Question

In order to provide a case of , four elements must be present.

Answered: 1 week ago

Question

What is Accounting?

Answered: 1 week ago

Question

Define organisation chart

Answered: 1 week ago

Question

What are the advantages of planning ?

Answered: 1 week ago

Question

=+ ^ What is the budget for this project?

Answered: 1 week ago

Question

=+What information is needed?

Answered: 1 week ago