Calculate the number of units of service required

Assignment Help Managerial Accounting
Reference no: EM132603133

Bondi Panorama is a boutique motel located near Bondi Beach. For one-night accommodation per person, the motel charges $50. The owner of the motel estimates that the variable cost per person is $20, which includes food and room services. The fixed cost is estimated to be $42,000 per year.

Required: Calculate

Question (1) The contribution margin per unit of service (the per unit of service is one night accommodation for one guest) and the contribution margin ratio.

Question (2) The annual breakeven point in dollars.

Question (3) Assuming the motel targets a net profit of $60,000 a year before tax, calculate the number of units of service required to reach this target.

Reference no: EM132603133

Questions Cloud

Solve contribution margin per unit of service : Solve contribution margin per unit of service (the per unit of service is one night accommodation for one guest) and the contribution margin ratio.
Difference between transport mode and tunnel mode : What is the difference between transport mode and tunnel mode? Whatt are the basic approaches to bundling SAs?
Prepare a plan for the software and tools : A law firm has hired you to assist with digital evidence cases involving divorces. The main evidence consists of email, spreadsheets, and documents.
Correcting actual performance : Explain the each one of the following these are three courses of action managers can take in controlling
Calculate the number of units of service required : Assuming the motel targets a net profit of $60,000 a year before tax, calculate the number of units of service required to reach this target.
What is filter command for listing all outgoing http traffic : What is the filter command for listing all outgoing http traffic? Why does DNS use Follow UDP Stream while HTTP use Follow TCP Stream?
What is is-bao and describe its purpose : What is IS-BAO and describe its purpose? Provide three (3) reasons why a corporate flight department should adopt IS-BAO standards.
Compare disaster recovery and business continuity plans : Write a 4 page APA formatted paper comparing your organization's disaster recovery and business continuity plans with the best practices outlined in your course
Find the adjusting entry needed on December : The company's annual accounting period ends on December 31. Find the adjusting entry needed on December 31

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Describe about employer or a favorite business

Describe about your employer or a favorite business you personally visit or are a patron (Starbucks, Netflix, Planet Fitness, etc.)

  Journalize the adjusting entries and create t accounts

Journalize the adjusting entries and create T accounts for all accounts used in part Enter the trial balance amounts into the T accounts and post the adjusting entries.

  How well were you able to engage the other party

Write an analysis of this encounter. How well were you able to engage the other party? How strong were your listening skills? Was it difficult to receive feedback?

  Determine the standard direct labor cost per brake repair

Determine the standard direct labor cost per brake repair. If brake repair took 5.60 hours at the standard hourly rate, what was direct labor quantity variance

  Determine the total cost assigned to units transferred out

Determine The total cost assigned to units transferred out of the Heating Department during March, The cost per equivalent unit for conversion.

  Find the internal rate of return on the investment

Business, resulting in additional net cash inflows of $36,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to

  Air flows from left to right through a horizontal pipe

5.1.3-5 Air flows from left to right through a horizontal pipe that has different diameters in two different sections, as shown below. The narrow section has a radius of 5.0 cm, and the wider section has a radius of 20 cm. At point 1 the air is flowi..

  Calculate the unit cost and the cost of ending inventory

Calculate the unit cost and the cost of ending inventory under absorption costing. (Round unit cost to the nearest cent and cost of ending inventory)

  Find transfer of production from department

Find transfer of production from Department × to Department Y. The recording of manufacturing costs incurred in Department Y during May

  Prepare a summary journal entry to record factory

Prepare a summary journal entry to record factory labor used - During January, its first month of operations, Knox Company accumulated

  What is the projected operating profit for the coming years

What will be the operating profit if the additional $234,165 is spent on advertising and sales rise to 45,400 units? What is the breakeven point in units

  Find the equivalent units of production for materials

Materials are added at beginning of the process. Determine equivalent units of production for materials and conversion costs for February using the FIFO method.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd