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 estimated fixed costs of the business. Round to the nearest dollar.
I need problem-solving steps!!
| New Equipment Value | $136354 |
| Loan Amount | $253967 |
| Interest Rate % | 12% |
| Investment by Owners | $336620 |
| Desired Rate of Return | 8% |
| Income Tax Rate % | 27% |
| Insurance Expense | $189165 |
| Fixed Wages | $170193 |
| Depreciation Rate % | 10% |
| Food Cost % | 19% |
| Variable Wage % | 14% |
| Other Variable Expenses % | 20% |
| Maximum # of Tour Guests per Tour | 41 |
| Average Occupancy % of Tours | 81% |
| # of Tours per month | 24 |
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
5th edition
9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169
