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 Ob. 29 packages Oc. 24 packages O d. 13 packages

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 Ob. 29 packages Oc. 24 packages O d. 13 packages

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 15RE: GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells...

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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 170 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel ?include OMR 3,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even packages 100 a O packages 9 b O packages 18 .c O packages 15 .d O
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 170 each. The round-trip tickets will be sold for OMR 200 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include OMR 3,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even? O a. 100 packages O b. 9 packages Oc. 18 packages O d. 15 packages NEXT PAGE ation nere to search W 19:09 DA d0) ENG 07-04-2021 の hp ト」 "prt sc delete home end Dg up %23 96 + backspace num tock R T. P home D F G K enter pause C レ * shift 11 end alt ctrl
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.
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.
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
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.)
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 $22,000 and earn an additional $4,000 if Highgate achieves $40,000 of cost savings. Leo estimates a 60% chance that Highgate will achieve $40,000 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?
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.
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?
GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells the FB7 model for 62,000, and this price includes one year of secure parking storage. GameDay also sell secure parking storage separately for 8,000 per year, and customers can purchase the FB7 model without secure parking storage for 60,000. If a customer purchases the FB7 model with secure parking storage, how should GameDay allocate the transaction price?
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 $66,000 and earn an additional $13,000 if Highgate achieves $130,000 of cost savings. Leo estimates a 70% chance that Highgate will achieve $130,000 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 ?
Zitchdog is a manufacturer of invisible fence dog collars. The company is considering two options to compensate its traveling sales personnel: Option 1: sales personnel are paid $6 per collar plus 25% of the revenue generated by the collars they sell per month Option 2: sales personnel are paid a flat $2,000 per month The collars are sold for $40 each. At what level of sales would the company choose Option 2? ○ A. 84 B. 124 OC. 126 O O D. 125 ○ E. There is not enough information