1. Compute the revenue, variable expenses and the contribution margin for each cruise
2. Compute the number of cruises Sunset voyages must have each year to breakeven.
3. The owner (himself is the captain also) expects a profit of $125,000 (being total return on his capital and remuneration for being the captain). Using the concept of “contribution margin” and a cost-volume-profit notion, estimate how many cruises the Sunset Voyages needs to make to reach this objective? Is there a realistic expectation?
4. Prepare a contribution margin income statement for Sunset Voyages Inc. assuming 100 cruises being operated during this period.
Budgeting for Galvin Manufacturing
Additional information includes:
(a) Purchases of inventory will total $50,000 for December; 20% will be paid for in December. Accounts payable from November’s inventory purchases is $32,000, all of which will be paid in December.
(b) Selling and administrative expenses are budgeted at $26,000 for December; of which $8,000 is for depreciation.
(c) Equipment costing $36,000 will be purchased for cash during December, and other miscellaneous cash expenses of $6,000 will be paid during December.
Prepare the cash collections for the month of December and also a Cash Budget for December. Show all workings clearly
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