Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20 days a month and only makes one trip on the day It operates. Price and cost Information for the Muncey follows: Selling price per passenger-trip Variable cost per passenger-trip Fixed cost per month Income tax rate 425 $ $ 175 $ 75,000 24% A passenger-trip is considered to be one passenger per trip. Required: a. Compute Muncey's break-even point in number of passenger-trips per month. b. How many passenger-trips per month must Muncey sell to earn $10,450 after taxes?

Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20 days a month and only makes one trip on the day It operates. Price and cost Information for the Muncey follows: Selling price per passenger-trip Variable cost per passenger-trip Fixed cost per month Income tax rate 425 $ $ 175 $ 75,000 24% A passenger-trip is considered to be one passenger per trip. Required: a. Compute Muncey's break-even point in number of passenger-trips per month. b. How many passenger-trips per month must Muncey sell to earn $10,450 after taxes?

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2MAD

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