ABC Service company provides shuttle service between four hotels near a Hospital and an international airport. ABC uses two 10- passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is shown below. Fare revenues (1,440 fares/units) OMR 36,000 Variable costs Fuel OMR 5,040 Tolls and parking 3,100 Maintenance 860 9,000 Contribution margin 27,000 Fixed costs Salaries 12,700 Depreciation 1,300 Insurance 1,000 15,000 Net income OMR 12,000 What is the break-even point in number of fares/Units?
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- Oriole provides shuttle service between four hotels near a medical center and an international airport. Oriole uses two 10-passenger vans to offer 12 round trips per day. A recent month’s activity in the form of a cost-volume-profit income statement is shown below. Sales (1,330 passengers) $39,900 Variable costs Fuel $5,809 Tolls and parking 7,164 Maintenance 992 13,965 Contribution margin 25,935 Fixed costs Salaries 12,500 Depreciation 1,700 Insurance 1,400 15,600 Net income $10,335 (A) Calculate the break-even point in dollars. Break-even point $Type your answer here (B) Calculate the break-even point in number of passengers. Break-even point Type your answer here passengers (C) Without calculations, determine the contribution margin at the break-even point. Contribution margin at the break-even point $Type your answer hereBlue Star Airline provides passenger airline service, using small jets. The airline connects four major cities: Charlotte, Pittsburgh, Detroit, and San Francisco. The company expects to fly 170,000 miles during a month. The following costs are budgeted for a month: Fuel $2,120,000 Ground personnel 788,500 Crew salaries 850,000 Depreciation 430,000 Total costs $4,188,500 Blue Star management wishes to assign these costs to individual flights in order to gauge the profitability of its service offerings. The following activity bases were identified with the budgeted costs: Airline Cost Activity Base Fuel, crew, and depreciation costs Number of miles flown Ground personnel Number of arrivals and departures at an airport The size of the company's ground operation in each city is determined by the size of the workforce. The following monthly data are available from corporate records for each terminal operation: Terminal City Ground Personnel Cost Number…1- An intercity road transport company has 18 buses with 40 seats each, which make an average of 8 journeys per day. The current occupancy rate is 30 passengers. The average ticket is R$ 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$ 4.69
- Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,519 per unit and then sells them to retail customers for an average price of $3,000 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $968 per month Sales salaries and commissions $4,783 per month, plus 5% of sales Delivery of pianos to customers $60 per piano sold Utilities $661 per month Depreciation of sales facilities $5,069 per month Administrative: Executive salaries $13,430 per month Insurance $696 per month Clerical $2,538 per month, plus $38 per piano sold Depreciation of office equipment $884 per month During August, Marwick’s Pianos, Incorporated, sold and delivered 59 pianos. Required: 1. Prepare a traditional format income statement for August.2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a…Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,508 per unit and then sells them to retail customers for an average price of $2,800 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 961 per month Sales salaries and commissions $ 4,802 per month, plus 5% of sales Delivery of pianos to customers $ 59 per piano sold Utilities $ 667 per month Depreciation of sales facilities $ 5,049 per month Administrative: Executive salaries $ 13,433 per month Insurance $ 696 per month Clerical $ 2,513 per month, plus $37 per piano sold Depreciation of office equipment $ 877 per month During August, Marwick’s Pianos, Incorporated, sold and delivered 55 pianos. Required: 1. Prepare a traditional format income statement for August.2. Prepare a contribution format income statement for August. Show costs and revenues on both a…nick limited sells creme, a cream suitable for variety of first aid uses. The company commenced operations earlier this year and expects to sell 100,000 tubes of Super crème. The following Information is available: Selling price per tube 7.00Direct material cost per tube 2.10 Direct labour cost per tube 1.35Variable overhead cost per tube 0.75Total fixed costs for the year. 210,000RequiredWhat is the Break-even point (BEP) in tubes and sales revenue? 4) If the company wanted to earn a profit of UGX 46,200 for the year how many tubes of Super crème must be sold? By what percentage should expected sales revenue fall before NICK Limited starts to make a loss? State the assumptions and limitations of break-even analysis
- Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 10 helicopters makes between 1,000 and 2,000 round-trips per year. The records indicate that a helicopter that has made 1,000 round-trips in the year incurs an average operating cost of $350 per round-trip, and one that has made 2,000 round-trips in the year incurs an average operating cost of $300 per round-trip. Q. Using the high-low method, estimate the linear relationship y = a + bX, where y is the total annual operating cost of a helicopter and X is the number of round-trips it makes to JFK airport during the year.Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 10 helicopters makes between 1,000 and 2,000 round-trips per year. The records indicate that a helicopter that has made 1,000 round-trips in the year incurs an average operating cost of $350 per round-trip, and one that has made 2,000 round-trips in the year incurs an average operating cost of $300 per round-trip. Q.If Reisen Travel expects each helicopter to make, on average, 1,200 round-trips in the coming year, what should its estimated operating budget for the helicopter fleet be?Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 10 helicopters makes between 1,000 and 2,000 round-trips per year. The records indicate that a helicopter that has made 1,000 round-trips in the year incurs an average operating cost of $350 per round-trip, and one that has made 2,000 round-trips in the year incurs an average operating cost of $300 per round-trip. Q. Give examples of costs that would be included in a and in b.
- Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,600 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 961 per month Sales salaries and commissions $ 4,799 per month, plus 4% of sales Delivery of pianos to customers $ 60 per piano sold Utilities $ 647 per month Depreciation of sales facilities $ 4,956 per month Administrative: Executive salaries $ 13,422 per month Insurance $ 702 per month Clerical $ 2,456 per month, plus $37 per piano sold Depreciation of office equipment $ 879 per month During August, Marwick’s Pianos, Inc., sold and delivered 56 pianos. Required: 1. Prepare a traditional format income statement for August.Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $3,400 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 948 per month Sales salaries and commissions $ 4,782 per month, plus 4% of sales Delivery of pianos to customers $ 57 per piano sold Utilities $ 664 per month Depreciation of sales facilities $ 4,905 per month Administrative: Executive salaries $ 13,450 per month Insurance $ 704 per month Clerical $ 2,469 per month, plus $44 per piano sold Depreciation of office equipment $ 928 per month During August, Marwick’s Pianos, Inc., sold and delivered 61 pianos. Required: 1. Prepare a traditional format income statement for August.2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per…House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $2,500 each. The average cost of an organ from the manufacturer is $1,500. The costs that the company incurs in a typical month are presented below: Costs Cost Formula Selling: Advertising . . . . . . . . . . . . . . . . . . . . . . . $950 per monthDelivery of organs . . . . . . . . . . . . . . . $60 per organ soldSales salaries and commissions . . . . . . $4,800 per month, plus 4% of salesUtilities . . . . . . . . . . . . . . . . . . . . . . . . . . $650 per monthDepreciation of sales facilities . . . . . . . . $5,000 per month Administrative: Executive salaries . . . . . . . . . . . . . . . $13,500 per monthDepreciation of…