SI CM- breakeven HO

SI CM- breakeven HO - d) What is operating income if sales...

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This material is produced by the SI Program at Arizona State University student success .asu.edu { collaborative peer-led structured group study SI What is the contribution margin? What is the format of the Contribution Margin Income statement? What is break-even? What is Target Profit? What is the Margin of Safety? What is the degree of operating leverage?
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This material is produced by the SI Program at Arizona State University student success .asu.edu { collaborative peer-led structured group study SI Bay Cruise-line offers nightly dinner cruises off the cost of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $50 per passenger. Bay Cruise-line’s variable cost of providing the dinner is $20 per passenger, and the fixed cost of operating the vessels is $210,000 per month. The company’s relevant range extends to 15,000 monthly passengers. a) What is the unit contribution margin per passenger? b) What is the contribution margin ratio? c) What is operating income if monthly sales total 10,000 passengers?
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Unformatted text preview: d) What is operating income if sales revenue totals $400,000? e) How many monthly passengers are necessary for the company to break even? f) What must sales dollars be in order to break-even? g) How many passengers are necessary to make a target profit of $100,000? This material is produced by the SI Program at Arizona State University student success .asu.edu { collaborative peer-led structured group study SI AUSSIE TRAVEL Contribution Margin Income Statement Three Months Ended March 31 Sales Revenue $500,000 Less: Variable Expenses $100,000 Contribution Margin $400,000 Less: Fixed Expenses $150,000 Operating income $250,000 Prepare Contribution Margin Income Statements at sales levels of $150,000 and $600,000? Compute Break-Even in Sales Dollars for each income statement including the one that is given. What is the Margin of Safety in sales dollars for each situation? What is the degree of operating leverage in each situation?...
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SI CM- breakeven HO - d) What is operating income if sales...

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