Venice Ghost Tours sells guided ghost-walks of the alleyways of Venice, Italy. Last month, they...
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Accounting
Venice Ghost Tours sells guided ghostwalks of the alleyways of Venice, Italy. Last month, they sold tickets for $ 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 $ Tour Guide Wage $
Overhead $ Administrative $
Administrative Costs $
Insurance $
Total $ Total $
In addition to the Venetian Tourism Tax listed above, they also pay Italian income tax at a rate of on their net income.
Required:
a What is the company's breakeven point for this month in tickets?
b How many tickets must the company sell to have an aftertax profit of $
c Prepare a contribution margin income statement based on requirement bNOTE: 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.
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