Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able topurchase the package from Oman Air for OMR 170 each. The round-trip tickets will be sold for OMR 200 each and the airline intendsto reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 3,000 in advertising costs.How manyticket packages will Sur Travel need to sell to break even?O a. 100 packagesO b. 9 packagesOc. 18 packagesO d. 15 packagesNEXT PAGEationnere to searchW19:09DA d0) ENG07-04-2021のhpト」"prt scdeletehomeendDg up%2396+ backspacenumtockRT.PhomeDFGKenterpauseCレ* shift11endaltctrl

Answered: break even?

Business

Accounting

break even?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sur Travel Company intends to sell its customers a special round-trip airline ticket package to Salalah. The Company will be able to purchase the package from Oman Air for OMR 140 each. The round-trip tickets will be sold for OMR 172 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 4,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? O a. 125 packages O b. 29 packages Oc. 24 packages O d. 13 packages
Jack intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $150 each. The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5,000 in advertising costs. How many ticket packages will Jack need to sell in order to achieve $60,000 of operating income? Select one: O a. 1,100 packages. b. 1,300 packages. 434 packages. Od. 367 packages. c. Prime costs include: Select one: of direct matenals and manufacturing overhead costs. direct materials and direct manufacturing labor costs. stion direct manufacturing labor and manufacturing overhead costs. only sireci ninaterials.
Sickets will Ruben intends to sell his customers a special round-trip airline ticket package. He is able to purchase the package from the airline carrier for $170 each. The round t be sold for $210 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $5200 in advertising costs. How many tickes packages wi Ruben need to sell in order to achieve $60,000 of operating income? O 130 packages O 311 packages O 1500 packages O 1630 packages
A travel agency offers Worldwide Flight Ltd. £150,000 for a round-trip flight service from Singapore to Beijing on a jumbo jet. Worldwide Flight usually receives £250,000 in revenue from this route. The company has two aircrafts that are idle and could be used to fly on the proposed Singapore to Beijing route. The company has no plan to add any other new routes. Worldwide Flight will save £5,000 in reservation and ticketing expenses if the offer is accepted. The following relates to the revenue and cost information of a typical flight service on the proposed route: Typical Flight Service Between Singapore and Beijing Revenue: £ 250,000 Passenger Cargo 30,000 Total £ 280,000 Expenses: Variable expenses Allocated fixed expenses 90,000 100,000 190,000 90,000 Total Profit Required: a) Should Worldwide Flight accept the offer? Explain your answer. b) Suppose makes a contribution margin of £70,000, because the two idle airplanes are not technically suitable for the route. Should Worldwide…
Flyalot has agreements with several major airlines to obtain airline tickets at reduced rates. Th e company pays only for tickets it sells to customers. In the most recent period, Flyalot sold airline tickets to customers over the internet for a total of $1.1 million. Th e cost of these tickets to Flyalot was $1 million. Th e company’s direct selling costs were $2,000. Once the customers receive their ticket, the airline is responsible for providing all services associated with the customers’ fl ights. 1 . Demonstrate the reporting of revenues under: A . gross reporting. B . net reporting. 2 . Determine and justify the appropriate method for reporting revenues.
Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $25,000 and earn an additional $10,000 if Highgate achieves $100,000 of cost savings. Leo estimates a 50% chance that Highgate will achieve $100,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
Leo Consulting enters into a contract with Highgate University to restructure Highgate's processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $80,000 and earn an additional $16,000 if Highgate achieves $160,000 of cost savings. Leo estimates a 50% chance that Highgate will achieve $160,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract? Transaction price for the contract
Companies that advertise “rent-to-own” dealsare sometimes criticized by consumer advocates for thehigh interest costs built into their rent-to-owncontracts. Rent-A-Center is currently offering a SonyPlayStation 5 Console - Disc Model for $34.99 a weekfor 49 weeks. Alternatively, the “Same as Cash Price” is$1,028.71. What is the APR for Rent-A-Center’s deal?To solve this problem, you must use a financial calculator, Excel, or a TVM calculatorwebsite. What is the effective annual rate for the deal?
Marquette has an opportunity to sell its product through an online retailer. To begin selling through this online platform, they are required to ship 2,000 units to the retailers’ order fulfillment warehouse. The other condition of this offer is that they pay a one-time vendor marketing fee of $5,000. To get the units to the fulfillment warehouse by the deadline Marquette will need to pay for expedited shipping at a cost of $10 per unit. What is the minimum price Marquette should charge the retailer for this initial order of 2,000 units? (Show all supporting calculations). (NOTE: ignore taxes or other costs not specifically mentioned in the questions.)
A specific model of computer servers are being sold by Company A for $26,700 each, offering trade discounts of 8% and 6% and by Company B for $35,500 each, offering trade discount rates of 13% and 3%. a. Which company offers the servers for a cheaper price? O A o B b. What further trade discount rate must the company with the higher price provide to match the lower price? %
Luke Consulting enters into a contract with Holand University to restructure Holand's processes for purchasing goods from suppliers. The contract states that Luke will earn a fixed fee of 25000 and earn an additional 10000 if Holand achieves 100000 cost of savings. Luke estimates a 50% chance that Holand will 100000 of cost of savings. Assuming that Luke determines the transaction price as the expected value of expected consideration, what transaction price will Luke estimate for this contract?
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player that normally sells for $45. A foreign wholesaler offers to buy 3,000 units at $25 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.