حل واجب B292 مهندس احمد واتساب 00966597837185 الكويت البحرين سلطنة عمان الأردن لبنان
Arab Open University
B292: TMA – Spring Semester 2018/2019
Cut-Off Date: April , 2019
Breakeven analysis for Opera Voyages
Opera voyages Inc., is a company operated by an individual as a summer tourist attraction on the great lakes. It operates a sailing schooner offering day cruises for individuals and groups. Over the last few years, the average number of tourists per cruise was 30.The average charge per person for the cruise, including group discounts was $ 100.The company operates from mid-may until mid-September. On average the ship sails 100 days (sailings) during this period.
The Sailing bird (the name of the schooner) requires a crew of 6 and is captained by the owner of the company. University students with extensive sailing experience have been willing to work on a per diem basis of $ 100. They are paid only if the ship is cruising. The ship provides non-alcoholic refreshments and a light lunch. These are required daily from a local delicatessen and cost on average $ 25 per person. The daily operating expenses, fuel and miscellaneous supplies average $ 50 a cruise. The company has a variety of annual expenses (fixed costs) including: maintenance, depreciation, marketing, licenses, Etc... Totaling approximately $ 85000.
1. Compute the revenue , variable expenses & the contribution margin for each cruise( 15 marks)
2. Compute the number of cruises Opera voyages must have each year to breakeven. ( 8 marks)
3. The owner (himself is the captain also) expects a profit of $ 125000 (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 Opera Voyages needs to make to reach this objective? Is there a realistic expectation?( 15 marks)
4. Prepare a contribution margin income statement for Opera Voyages Inc. assuming 100 cruises being operated during this period.( 12 marks)
Budgeting for Davidson Manufaturing Company
Davidson Manufacturing needs to prepare a cash budget for December 2016. The cash balance at the beginning of December is $9,000. The actual sales for October and November and expected sales for December are:
Information October ($) November ($) December ($)
Cash Sales 13,000 10,500 14,800
Sales on Account 40,000 60,000 80,000
Total Sales 53,000 70,500 98,800
Sales on account are collected over a three-month period in the following ratio:
10% in the month of sale,
70% in the month following sale
18% in the second month following sale
2% remaining are uncollectible.
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 (20 marks) and also a Cash Budget for December.( 30 marks) Show all working clearly