Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. venice ghost tours sells guided ghost-walks of the

Venice Ghost Tours sells guided ghost-walks of the alleyways of Venice, Italy. Last month, they...

90.2K

Verified Solution

Question

Accounting

Venice Ghost Tours sells guided ghost-walks of the alleyways of Venice, Italy. Last month, they sold 1,800 tickets for $200 each. They provide you with the following breakout of their costs related to these tours last month:
Variable Costs per Ticket Sold Fixed Costs
Venetian Tourism Tax $20 Tour Guide Wage $12,000
Overhead $35 Administrative $10,000
Administrative Costs $5
Insurance $7
Total $67 Total $22,000
In addition to the Venetian Tourism Tax listed above, they also pay Italian income tax at a rate of 27% on their net income.
Required:
(a) What is the company's break-even point for this month in tickets?
(b) How many tickets must the company sell to have an after-tax profit of $60,000?
(c) Prepare a contribution margin income statement based on requirement b.(NOTE: Don't try to type requirement c into My Business Course. Type in your contribution margin number only. Prepare your income statement on your working paper.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

When insiders have a much greater impact on the wage-bargaining process than do outsiders, the negotiated...

Economics
Q

Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or...

Accounting
Q

The primary role of oxygen in cellular respiration is to A combine with carbon forming...

Biology
Q

Question 7 Points 1 How do political parties and interest groups differ Interest groups nominate...

Biology
Q

C From a circular disc of radius R and mass 9M a small disc of...

Physics
Q

D ce of radius R separates two medium of refractive indices and as shown in...

Physics
Q

Identify each pair of angles as complementary supplementary linear vertical or adjacent Use the Angle...

Geometry
Q

Which equation is represented in the graph below C y 2 sin 4x y 3...

Algebra
Q

The table below gives the probability density for blood types in a population Blood Type...

Algebra
Q

Economic break-even point focuses on the _ associated with the project. A. net...

Accounting
Q

(7-2) REQUIRED RATE OF RETURN Assume that the risk-free rate is 6% and that the...

Accounting
Q

Week 2 Discussion In your own words, define Statistical Inference. Why would it be important...

Accounting