PLEASE SHOW ALL WORK!
Muncey Fishing Charters consists of one boat with a capacity of 15 passengers, not including the crew. Muncey offers only one charter package: a one-half day fishing trip off the coast. Because of weather, crew availability, and so on, Muncey operates an average of 20 days a month and only makes one trip on the day it operates. Price and cost information for the Muncey follows:
Selling price per passenger-trip $ 395
Variable cost per passenger-trip $ 145
Fixed cost per month $ 72,000
Income tax rate 24%
A passenger-trip is considered to be one passenger per trip.
Required:
Compute Muncey's break-even point in number of passenger-trips per month.
How many passenger-trips per month must Muncey sell to earn $9,310 after taxes?
Compute Muncey's break-even point in number of passenger-trips per month.