Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Calculation of break even sales using CVP formula.
The following are the monthly fixed expenses for Peyton Travel:
Office rent:
$3,000.00
Depreciation of office furniture
200
Utilities
110
Telephone
520
Reservation Service Fees
380
Travel Agent Salaries
1,400.00
Variable expenses include the following:
Travel Agent Commission
5.0% of sales
Advertising
6.0% of sales
Supplies and Postage
1.0% of sales
Telephone and Reservation Service usage fees
3.0% of sales
a) Use the contribution margin ratio CVP formula to compute Peyton Travel's break-even sales in dollars. If the average sales price of a ticket is $660.00; how many tickets must be sold to reach break-even?
b) Use the income statement equation [revenue - (variable expense + fixed expense) = operating income] to compute the dollar sales needed to earn a target monthly operating income of $6,290.00. How many tickets is this if the average sales price of a ticket is $660.00?
c) Assume the average sales price decreases to $440.00 per ticket. Use the contribution margin approach to compute Peyton Travel's new break-even point in tickets sold. How does this compare to your answer in part a)?
Determine the variances and indicate whether each is favorable or unfavorable, Materials price variance and Materials quantity variance
Identify a decision that has recently been made or will be made in the near future in your organization. Identify two relevant and two non-relevant costs in this decision.
Evaluate the following: (a) ratio of fixed assets to long-term liabilities, (b) ratio of liabilities to stockholders' equity, (c) ratio of net sales to assets, (d) rate earned on total assets, (e) rate earned on stockholders' equity, and (f) rate ..
How many pupils do Molly and Kathleen need to enroll in their class to break even and If Molly and Kathleen want to make a profit of $5,000 for the summer, how many pupils do they need to enroll?
Evaluate the company's break-even point in number of widebody passenger jets and in dollars of sales.
Determine the NPV of given investment
What could be the cost of the ending inventory
Compute present value and the internal rate or return for the new product line - outlay for working capital will be recovered at the end of six year. Aunt Sally's tax rate is 34% and the firm requires 16% return.
Evaluation of Arithmetic Geometric Mean and NPV and the arithmetic and geometric returns for the stock
Evaluate the amount of gross income to be recognized from the installment sale in 2013, 2014, 2015, and 2016 using point of delivery revenue recognition.
Disclosure of notes payable in financial statements - How much of the $1,000,000 notes payable could be classified as present in Reeds balance sheet at December, 2007?
Western feels that if they eliminate the East store that sales in the West store will decline by 25%. If they close the East store, Compute overall company net income
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd