Question
You are part of a group of owners who wish to invest money into a new tour business. Use the information below to calculate the
You are part of a group of owners who wish to invest money into a new tour business. Use the information below to calculate the required information asked of you for this question, using the Bottom-Up Pricing method.
*Note*
Only find the answer to the single question being asked of you in this question; do not complete all the Bottom-Up Pricing steps. Previous steps information is provided below to assist you.
Calculate the Net Income/After-Tax Profit required to meet the owners desired rate of return. Round to the nearest dollar.
I need problem-solving steps
| New Equipment Value | $177402 |
| Loan Amount | $205314 |
| Interest Rate % | 11% |
| Investment by Owners | $313446 |
| Desired Rate of Return | 9% |
| Income Tax Rate % | 29% |
| Insurance Expense | $130120 |
| Fixed Wages | $188929 |
| Depreciation Rate % | 4% |
| Food Cost % | 12% |
| Variable Wage % | 13% |
| Other Variable Expenses % | 19% |
| Maximum # of Tour Guests per Tour | 15 |
| Average Occupancy % of Tours | 89% |
| # of Tours per month | 25 |
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Construction accounting and financial management
Authors: Steven j. Peterson
2nd Edition
135017114, 978-0135017111
