Contribution Income Statement, Cost-Volume-Profit Graph, and Taxes
New York Tours (NYT) provides daily sightseeing tours that include transportation, admission to selected attractions, and lunch. Ticket prices are $85 each. During June 2013, NYT provided 3,000 tours.
Variable Costs per Customer Fixed Costs per Month
Admission fees ...................$30 Operations.................................$25,000
Lunch.....................................17 Selling and administration ..........15,000
Overhead..................................10
Selling and administrative...........8
Total .......................................$65 Total ............................$40,000
NYT is subject to an income tax rate of 40 percent
Required
a. Prepare a contribution income statement for June.
b. Determine NYT’s monthly break-even point in units.
c. Determine NYT’s margin of safety for June 2013.
d. Determine the unit sales required for a monthly after-tax profit of $15,000.
e. Prepare a cost-volume-profit graph. Label the horizontal axis in units with a maximum value of 4,000. Label the vertical in dollars with a maximum value of $300,000. Draw a vertical line on the graph for the current (3,000) unit level and label total variable costs, total fixed costs, and total before-tax profits at 3,000 units.
All work should be shown please in excel please.