Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 7-day, 6-night trip to Cancun and a 5-day, 4-night trip to Jamaica, have the following characteristics: Package Specifications Oceanfront room; number of nights Meals: Breakfasts Lunches Dinners Scuba diving trips Water skiing trips Cancun Jamaica 4 6 3 4 1 454222 Cost Data $65/night $12/ea $17/ea $27/ea $83/ea $58/ca Airfare (round trip from Miani) Transportation to and from airport $260 (Cancun), $418 (Jamaica) $36 (Cancun), $52 (Jamaica) The Cancun trip sells for $1,900, and the Jamaica trip sells for $1,660, and both packages allow two bags to be checked for free. Required: 1. What are the current profit margins on both trips? 2. Take-a-Break's management believes that it must drop the price of each trip by $108 in order to remain competitive in the marke Recalculate profit margins for both packages at these price levels.

Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 7-day, 6-night trip to Cancun and a 5-day, 4-night trip to Jamaica, have the following characteristics: Package Specifications Oceanfront room; number of nights Meals: Breakfasts Lunches Dinners Scuba diving trips Water skiing trips Cancun Jamaica 4 6 3 4 1 454222 Cost Data $65/night $12/ea $17/ea $27/ea $83/ea $58/ca Airfare (round trip from Miani) Transportation to and from airport $260 (Cancun), $418 (Jamaica) $36 (Cancun), $52 (Jamaica) The Cancun trip sells for $1,900, and the Jamaica trip sells for $1,660, and both packages allow two bags to be checked for free. Required: 1. What are the current profit margins on both trips? 2. Take-a-Break's management believes that it must drop the price of each trip by $108 in order to remain competitive in the marke Recalculate profit margins for both packages at these price levels.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 5TIF: Accepting service business at a special price If you are not familiar with Priceline.com Inc....

See similar textbooks

Similar questions

Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 7-day, 6-night trip to Cancun and a 5-day, 4-night trip to Jamaica, have the following characteristics: Package Specifications Oceanfront room; number of nights Meals: Breakfasts Lunches Dinners Scuba diving trips Water skiing trips Airfare (round trip from Miami) Transportation to and from airport Required 1 Required 2 Profit margin Profit margin (%) Required 1 $200 (Cancun), $405 (Jamaica) $29 (Cancun), $44 (Jamaica) The Cancun trip sells for $1,800, and the Jamaica trip sells for $1,560, and both packages allow two bags to be checked for free. Cancun Profit margin Profit margin (%) Required 2 Complete this question by entering your answers in the tabs below. % Cancun Required: 1. What are the current profit margins on both trips? 2. Take-a-Break's management believes that it must drop the price of each trip by $103 in order to remain competitive in the market. Recalculate…
Service department charges and activity bases Middler Corporation, a manufacturer of electronics and communications systems, uses a service department charge system to charge profit centers with Computing and Communications Services (CCS) service department costs. The following table identifies an abbreviated list of service categories and activity bases used by the CCS department. The table also includes some assumed cost and activity base quantity information for each service for October. Budgeted Activity CCS Service Category Activity Base Budgeted Cost Base Quantity Help desk Number of calls $170,000 3,400 Network center Number of devices monitored 824,000 10,300 Electronic mail Number of user accounts 88,200 9,800 Number of handheld devices Handheld Technology support 118,300 9,100 issued One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: • The sector has 4,800 employees, of whom 35%…
t.php?attempt%3D1347310&cmid3D701917&page3D2 E-learning services SQU Libraries SQU Portal Attendance English (en) Ali decided to install a new internet fiber service. He signed a contract with Company XYZ. The contract states that Ali pays a monthly subscription fee. Ali's monthly internet cost can be classified as a: t of estion Select one: a. Sunk cost b. Fixed cost C. Moderation cost O d. Mixed cost Oe. Variable cost ious page Next page - Answers to Ch3 Additional Exercises Jump to Exam 1 Part 2- Sp20
https://elearn.squ.edu.om/mod/quiz/attempt.php?attempt=1863256&cmid%3D88624 (SQU E-LEARNING SYSTEM 0:30:28 ll 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 150 each. The round-trip tickets will be sold for OMR 250 each and the airline intends to reimburse Sur Travel for any unsold ticket packages. Fixed costs for Sur Travel include ?OMR 5,000 in advertising costs.How many ticket packages will Sur Travel need to sell to break even packages 34 a O packages 20 .b O packages 50 .c packages 13 d For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $100,000 for the financial year ending 2021
A CengageNOWv2 | Online teaching and learning resource from Cengage. eBook Revenue Recognition Principle Heartstrings Gift Shoppe sells an assortment of gifts for any occaslon. During October, Heartstrings started a Gift-of-the-Month program. Under the terms of this program, beginning in the month of the sale, Heartstrings would select and deliver a random gift each month, over the next 12 months, to the person the customer selects as a recipient. During October, Heartstrings sold 20 of these packages for a total of $10,956 in cash. Required: For the month of October, calculate the amount of revenue that Heartstrings will recognize. 10,956 X Feedback Check My Work Apply the revenue recognition principle, which states that revenue is recognized when earned and the collection of cash is reasonably assured. Previous Next Check My Work Suhmit Assignment for Grading Couo and Exit
Magical Memories sells Florida theme park vacation packages to various customers throughout the United States. Magical Memories receives a 5% commission based on the total price of the vacation package. A customer purchased the Deluxe Package valued at $15,000. Required: Prepare Magical Memories’s journal entries to record sale of the vacation package, the receipt of cash from the customer, and the remittance to the theme park.
Mookie the Beagle Concierge makes a payment on the VISA credit card on 01/31/2023 in the amount of $800. Required: To record the payment on the VISA credit card: 1. From the Navigation Bar, select Expenses > select Expenses tab 2. From the New transaction drop-down menu, select Pay down credit card 3. For Which credit card did you pay?, select 2100 VISA Credit Card 4. For How much did you pay?, enter 800.00 5. For Date of payment, enter 01/31/2023 6. For What did you use to make this payment?, select 1001 Checking 7. Select Save and close 8. What is the balance of the VISA Credit Card account after the credit card payment is recorded? Note: Answer this question in the table shown below. Round your answer to the nearest dollar amount. Answer is complete but not entirely correct. $ 1,673.00 8. Balance of the VISA credit card account
Mookie the Beagle Concierge makes a payment on the VISA credit card on 01/31/2023 in the amount of $800. Required: To record the payment on the VISA credit card: 1. From the Navigation Bar, select Expenses > select Expenses tab 2. From the New transaction drop-down menu, select Pay down credit card 3. For Which credit card did you pay?, select 2100 VISA Credit Card 4. For How much did you pay?, enter 800.00 5. For Date of payment, enter 01/31/2023 6. For What did you use to make this payment?, select 1001 Checking 7. Select Save and close 8. What is the balance of the VISA Credit Card account after the credit card payment is recorded? Note: Answer this question in the table shown below. Round your answer to the nearest dollar amount. X Answer is complete but not entirely correct. $ 800.00 x 8. Balance of the VISA credit card account
dex.html?_con-contexternal browser-08launchUrd-http%253A% User Management,.. https://outlook.off.. 2Haytechccblackboard.com%252 FES Protection Plan work Exercises Seved 2. On June 1, 20X1, the firm bought supplies for $7,750. The $7750 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $3,200 were on hand. 3. On June 1, 20X1, the firm bought equipment costing $67,200. The equipment has an expected useful life of 10 years and no salvage value. The firm will use the straight-line method of depreciation. Prepare end-of-June adjusting entries for Conner Company View transaction list Journal entry worksheet A B Prepare the adjusting entry for prepaid rent. Note: Enter debits before credits. Debit Credit Transaction General Journal 1 Next >
Accepting service business at a special price If you are not familiar with Priceline.com Inc. (PCLN), check out its website. Assume that an individual names a price of 85 on Priceline.com for a room in Nashville, Tennessee, on August 22. Assume that August 22 is a Saturday with low expected room demand at a Marriott International, Inc. (MAR), hotel in Nashville, so there is excess room capacity. The fully allocated cost per room per day is assumed from hotel records as follows: Should Marriott accept the customers 85 bid? Why or why not?
Journalize this transaction: Paid $320 to Ameren for the monthly bill. Edit View Insert Format Tools Table 12pt v Paragraph v В I U MacBook Pro Oine Fi En ACCT 101 Onre le Oa01 for Ais eet # $ % & 3.
YouTube Maps Th AL BSREC C2-AC. M Gmal AIT AIT Student Links- AIT Library Resources AIT Staff Links- counting 2B - (AL BSREC_C_2) pard / My courses / AL BSREC C_2 - ACCT 06038-21636 - L02 / General / Alternative Exam 28th April 2 n 4 The following forecast information relates to Athlone Restaurant. Sales covers forecast per month are estimated at 20,000. red d out of Average selling price per meal €12 Variable cost per meal €4 question Fixed cost per month €120,000 Calculate: How many meals must be sold to achieve a profit of €10,000 per month? Make sure you insert a comma () to indicate thousands for example 10,000 Answer: rious page VO