PJbas operates a bus sightseeing tour of Putrajaya. Below is the operating cost depending on the number of tickets sold for the first four months of operation. Month Tickets sold Cost (RM) Jan 10,000 60,000 Feb 7,500 40,000 Mar 6,000 50,000 Apr 5.500 55,000 Using the High-Low method, calculate the monthly fixed operating cost OA. RM48,889 O B. RM31,667 OC. RM20,000 O D. RM35,000
Q: Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on…
A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: Lifetime Escapes generates average revenue of $7,500 per person on its 5-day package tours to…
A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…
Q: FunTime Cruiseline offers nightly dinner cruises departing from several cities on the east- ern…
A: The question is based on the concept of Cost Accounting.
Q: CVP analysis, changing revenues and costs. Sunset Travel Agency specializes in flights between…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: - An intercity road transport company has 18 buses with 40 seats each, which make an average of 8…
A: Cost per bus: Cost Amount Drivers =R$ 120000/18 buses 6,667 Administration= (R$ 140,000/…
Q: Wadena Search and Rescue estimates the monthly cost of responding to emergency calls to be $90,000,…
A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…
Q: Atlantis Company is placing an ad in the local paper to advertise its products . The ad will run for…
A: Advertising Cost allocated to Product A = Total Advertising Cost X Percentage of Floor Space…
Q: The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000.…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: For a table manufacturing company, selling price for a table is $61.00 per Unit, Variable cost is…
A: Fixed Cost: As the name itself suggests, the cost will be fixed whether production activity is…
Q: Super Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of…
A: Contribution margin = Selling Price - Variable cost Contribution margin ratio = Contribution margin…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Answer 1- EOQ= (2AO/C)^1/2 where, A= Annual Average Demand= 500*250=125000 O= Cost per order= 400 C=…
Q: Use the high-low method to compute the function relating promotional costs and revenues.
A: Definition: High-low method: It is method of estimating the variable cost per unit and the fixed…
Q: The manager of a tourist attraction is considering whether to open on 1 January, a day when the…
A: Variable costs: It refers to the costs that change with the change in the level of unit produced.
Q: Racine Tire Co. manufactures tires for all-terrain bicycles , The tires sell for P60 and variable…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: A scrap metal dealer purchased a truck for $45,000, and the maintenance cost for the truck was $890…
A: Given: Cost of truck = $45,000 Maintenance cost = $890 Revenues = $5,000 Sale value = $12,000
Q: 2) Modern LLC rented a manufacturing machine from supplier for one month. Following expenditure were…
A: Since you have asked multiple sub parts we will answer the first three sub parts for you as per the…
Q: Assume Intervale Railway is considering hiring a reservations agency to handle passenger…
A: Total reservation cost = Fixed costs (flat fee) + Variable cost (cost per passenger reservation)
Q: Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly…
A: 1. Prepare a contribution format income statement for the company as a whole. Carry computations to…
Q: The following data relate to a company that produces and sells a travel guide that is updated…
A: Contribution margin ratio is the ratio of contribution per unit to sales per unit. It can be…
Q: The monthly electricity bill for Company XYZ comprises of two components: a flat subscription fee of…
A: Electricity bill comprises of fixed cost i.e flat subscription fee and variable cost i.e. constant…
Q: Super Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of…
A:
Q: Golden Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on…
A: Break-even level is the level where business earns no profit nor incurs loss. Beyond break-even…
Q: Olongapo Sports Corporation distributes two premium golf balls—the Flight Dynamic and the Sure Shot.…
A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: Raveen Products sells camping equipment. One of the company’s products, a camp lantern, sells for…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The monthly electricity bill for Company XYZ comprises of two components: a flat subscription fee of…
A: Following is the answer to given question
Q: Travel Agency specializes in flights between Toronto and Peru. It books passengers on Toronto Air.…
A: The formulas are:
Q: Recent monthly costs of providing on-board flight service incurred by Great Plains Airlines are…
A: High low method is the method used to segregate the cost into the variable and fixed cost.
Q: ABC Service company provides shuttle service between four hotels near a Hospital and an…
A: The information regarting Sales, Variable cost and Fixed Cost are given Required What is the break…
Q: Travel Agency specializes in flights between Toronto and Peru. It books passengers on Toronto Air.…
A: Break-even point (in units) =fixed cost/ contribution margin per unit Units to be sold to get target…
Q: Disk City, Inc., is a retailer for digital video disks. The projected net of 290,000 video disks.…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Jolly Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on…
A: Break even point - It is the situation in the company where cost is equal to the revenue of the…
Q: Triple T Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag P2.50…
A: Computation of Reorder Point Maximum lead time = 13.5 days Number of units sold per year = P100,000…
Q: Tucker Pup’s Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog-…
A: Introduction: The money required to run your firm is referred to as its operation cost. These are…
Q: BBMLOVESLENI Company operates a fleet of delivery trucks in Luzon. The company has determined that…
A: SOLUTION- WORKING NOTE-1 CALCULATION OF VARIABLE COST AND FIXED COST USING LOW HIGH METHOD-…
Q: ABC Service company provides shuttle service between four hotels near a Hospital and an…
A: Break Even Point in number of fares/ units = Total Fixed Cost / Contribution per Unit Contribution…
Q: If Intervale Railway’s fixed costs total $90,000 per month, the variable cost per passenger is $45,…
A: Contribution margin per passenger = Sales price per passenger - variable cost per passenger =…
Q: per Month $21,400 Repair-Hour Wages and salaries Parts and suPplien Equipment depreciation Truck…
A: Flexible budget is prepared for actual activity where activity variance is the difference between…
Q: The Crandall store begins each week with 220 phasers carrying cost per phaser is $17 per year and…
A: Note : As per the guidelines, only first three parts will be answered. Kindly post the remaining…
Q: The monthly electricity bill for Company XYZ comprises of two components: a flat subscription fee of…
A: Following is the answer to given question
Q: From the following information prepare a statement showing the estimated working capital…
A: Working capital is the capital needed to run the business. Its a day to day capital Working Capital…
Q: Oak Island Amusements Center provides the following data on the costs of maintenance and the number…
A: Variable cost per unit using high-low method (Highest Cost - Lowest Cost) / (Highest no. of visitors…
Q: A motor company needs vital information, for calculating the cost of nunning a motor truck per…
A: 1 Month = 5 Weeks [mention in the question] Monthly Depreciation = Annual Depreciation / 12…
Q: Carla Vista provides shuttle service between 4 hotels near a medical center and an international…
A: Contribution margin ratio = $32,184 / $40,240 = 80% Contribution margin per unit = $32,184 / 1490 =…
Q: Jack's Auto manufactures electric compact cars at $15,000 per unit. The company sells the cars at a…
A: Variable manufacturing cost per unit = $ 15,000 Selling price per unit = $ 45,000 Fixed cost = $…
Q: Monthly Sales for previous year were 10,000 Mobile Phones. Overall Market has grown at 15% from the…
A: Cost accounting is the accounting of the cost incurred in manufacturing the goods which includes…
Q: Compute the reorder point for TTT Inc.
A: Reorder point = lead time demand + safety stock Lead time demand = Lead time * Average daily sales…
Step by step
Solved in 2 steps
- CoastalFast is a commuter train company. On regional route SUN, CoastalFastcurrently charges $8 per passenger (fare). Monthly revenue for this route is $112,000. Currently variable cost is $4.25 per passenger and fixed cost is $54,750 per month.(complete the calculations for a month) Required: Enter this information into the “Data Table” in your CVPTemplate (Hint you will need to calculate the number of passengers). Set up formulas to calculate, Revenue, Cost, & Income Use formulas to complete the contribution margin income statement. Use scenario manager to save this original data that you added to the “Data Table”. [name this scenario: Original] Hint: only save the four variables in the data table. If you put a formula in any of these cells, allow scenario manager to change these values to constants. Use Goal Seek to find out how many passengers are necessary to breakeven. (Hint: you will need to set income to 0) Use scenario manager to save this breakeven information [name…How do I compute the breakeven point in tickets and in sale dollars? Thrills sells tickets at $50 per person as a one day entrance fee. Variable costs are $28 per person, and fixed costs are $166,500 per monthSunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Hamilton Air. Sunset’s fixed costs are $23,500 per month. Hamilton Air charges passengers $1,500 per round-trip ticket. Calculate the number of tickets Sunset must sell each month to (a) break even and (b) make a target operating income of $10,000 per month in each of the following independent cases. Q1. Sunset’s variable costs are $43 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. Q2. Sunset’s variable costs are $40 per ticket. Hamilton Air pays Sunset 6% commission on ticket price. Q3. Sunset’s variable costs are $40 per ticket. Hamilton Air pays $60 fixed commission per ticket to Sunset. Comment on the results. Q4. Sunset’s variable costs are $40 per ticket. It receives $60 commission per ticket from Hamilton Air. It charges its customers a delivery fee of $5 per ticket. Comment on the results.
- 1- An intercity road transport company has 18 buses with 40 seats each, which make an average of 8 journeys per day. The current occupancy rate is 30 passengers. The average ticket is R$ 8.00 per segment per passenger. The following activities and respective monthly costs and cost drivers are presented: Drivers: R$ 120,000 Number of buses; Administration: R$ 140,000 Number of passengers; Tax: R$ 30,000 Number of stretches; Rents: R$ 20,000 Number of stretches; Other Costs R$50,000 Number of passengers. What is the minimum ticket price knowing that taxes are 18% on gross revenues and there is still a 2.0% commission on sales and that the margin on unit cost must be 35%? What is the result for the current ticket? Respectively, minimum price and result: *A) R$2.78 and R$3.62B) R$4.69 and R$2.78C) R$ 4.69 and R$ 3.62D) R$ 2.78 and R$ 4.69Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?The monthly electricity bill for Company XYZ comprises of two components: a flat subscription fee of $400 per month and constant rate per kilo watt of $16. Assume that Company XYZ consumed 500 kilo watts during the month of December, how much the total electricity bill, in ($) value, for the month of December would be? Select one: а. 500 b. 900 с. 8,400 d. 8,000 e. None of the given answers
- 4. Thrills Amusement Park provides a variety of attractions. Thrills sells tickets at $50 per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are $178,800 per month. Assume that Thrills reduces fixed costs from $178,800 per month to $166,500 per month. Compute the new breakeven point in tickets and in sales dollars. $376,445 $378,450 $411,350 $395,200The following information relates to BETTER BOOKS LIMITED, a publishing company. The selling price of a book is K15, 000 and sales are made on credit through a book club and invoiced on the last day of the month. Variable costs of production per book are Materials (K5, 000), Labour (K4,000), and Overhead (K2,000). The sales manager has forecast the following volumes Nov. Dec. Jan. Feb. Mar. April May June July Aug. No of books 1,000 1,000 1,000 1, 250 1,500 2,000 1,900 2, 200 2, 200 2,300 Customers are expected to pay as follows: □ One month after the sale 40% □ Two months after the sale 60% The company produces the books two months before they are sold and the creditors for materials are paid two months after production. Variable overheads are paid in the month following production and are expected to increase by 25% in April, 75% of wages are paid in the month of…Recent monthly costs of providing on-board flight service incurred by Great Plains Airlines are shown in the following table: Month Number of passengers Cost of On-Board Flight Service January 16,000 17,000 February 16,500 18,000 March 18,000 20,000 April 14,000 18,000 Required: a) Use the high-low method to estimate the variable cost per passenger and the fixed cost per month. Show your calculations.
- The monthly electricity bill for Company XYZ comprises of two components: a flat subscription fee of $450 per month and constant rate per kilo watt of $18. Assume that Company XYZ consumed 500 kilo watts during the month of December, how much the total electricity bill, in ($) value, for the month of December would be? Select one: O a. 950 O b. 500 O c. 9,450 O d. 9,000 O e. None of the given answersNorth East printing produces posters of popular music groups for sale at concerts and festivals. The company has fixed expenses of $319,500 per month pla sells each poster for $9.50. North East has a target monthly income of $213,000. What is North East's operating leverage if it achieves its operating income OA. 4.0 OB. 2.5 OC. 0.4 O D. 1.0Butter cup company distribute a single product. The company's sale's and expenses for last month follow: Sale's P 450,000. Per unit P 30 Variable expenses 180,000 per unit P12 Contribute margin 270,000 per unit P18 Fixed expenses 216,000 Net operating income P54,000 What is the monthly break-even points in unit sold and in sales pesos? How many units would have to be sold each month to earn a target profit of Php 90,000 $ Use the formula method verify your answer by preparing a contribution format income statement at the target sale's level