Solution-Prepare a contribution income statement for July

Prepare a contribution income statement for July

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Reference no: EM133070096

Question - Jail and Sail: Alcatraz Tour and Cruise provides sunset sightseeing tours of Alcatraz and the San Francisco Bay. Tickets cost $140 each. Assume 3,300 customers were served in July.

Variable Costs per Customer		Fixed Costs per Month
Admission fees	$60	Operations	$75,000
Overhead	25	Selling and administration	18,750
Hors d'oeuvres	15
Selling and administrative	2
Total	$102	Total	$93,750

Jail and Sail is subject to an income tax rate of 21%.

Required -

a. Prepare a contribution income statement for July.

b. Determine Jail and Sail's monthly break-even point in units.

c. Determine Jail and Sail's margin of safety in units for July.

d. Determine the unit sales required for a monthly after-tax profit of $30,000.

Reference no: EM133070096

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Prepare a contribution income statement for July

Reference no: EM133070096

Reference no: EM133070096

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