Answer:
1) Colt Carriage Company
Income Statement
For the month ended April 202x
Revenues:
- Adults passengers $186,300
- Children $81,000
- Total revenues $267,300
Variable costs:
- City fees $26,730
- Souvenirs $7,425
- Brokerage fees $11,340
- Carriage drivers $52,650
- Total variable costs <u>$98,145</u>
Contribution margin $169,155
Period costs:
- Depreciation $2,900
- Horse leases $48,000
- Marketing expenses $7,350
- Payroll expenses $7,600
- Total period costs <u>$65,850</u>
Operating profit $103,305
2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.
Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.
Explanation:
since the information is not complete, I looked it up:
Revenues
13,500 passengers:
8,100 x $23 = $186,300
5,400 x $15 = $81,000
total $267,300
variable costs:
fees paid to the city 10% of total revenue
souvenirs $0.55 per passenger
brokerage fees 60% of total tickets x $1.40
carriage drivers $3.90 per passenger
fixed costs:
depreciation $2,900
horse leases $48,000
marketing expenses $7,350
payroll expenses $7,600
Answer:
Explanation:
According to the Kai surf shop in Laie, Hawaii, below is the computation of sales and use tax of surf shop that must collect or remit.
A.
Kai doesn't have a sales tax nexus with Utah, therefore it will not have any sales tax liability. Instead, Kalani will have a tax liability in Utah that will be $63($1000 x 6.85%).
B.
kai will have a tax liability of $83($2000 x 4.166%) Also, Nick will have use tax liability of $87[($2000 x (9% - 4.166%)].
C.
Kai doesn't have a sales tax nexus with Michigan, therefore it will not have sales tax liability. Instead, Jim will have a use tax liability in Michigan will be $140($2000 x 6%)
D.
Sales and use tax is not imposed on sale of services. Therefore, neither Kai nor Scott will have any sales or use tax liability.
Answer:
Number of vehicles to be sold to reach break-even point is 200,000 unit
Explanation:
<em>Computation of Dealer’s Discount:
</em>
Dealer Discount = MSRP * Rate of Discount
=$30,000×10%
=$3,000
<em>Computation of net selling Price: </em>
Net Selling Price = MSRP - Dealer ′
s Discount
=$30,000 - $3,000
=$27,000
<em>Computation of Contribution Margin: </em>
Contribution Margin = Net Sales - Unit Cost
=$27,000 - $20,000
=$7,000
<em>Compute the number of units to reach break-even point for Firm X.</em>
Break-even point = Fixed cost / Contribution per unit
=$1,400,000,000 / $7,000
=200,000 units
Therefore, number of vehicles sold to reach break-even point is 200,000.
Nb: MSRP means manufacturer's suggested retail price
Answer: Partnership:
Can be easier to raise funds
Required sharing of profits
Is owned by two or more people
Sole proprietorship:
Is owned by a single person
Is easiest to start
Includes 75% of all US businesses
Explanation: I got it right on the quiz
