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 2017.
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.
P3-29. Contribution Income Statement, Cost-Volume-Profit Graph, and Taxes New York Tours (NYT) provides daily sightseeing tours that include transportation, admission to se- lected attractions, and lunch. Ticket prices are S85 each. During June 2017, NYT provided 3,000 tours. Variable Costs per Customer Fixed Costs per Month $25,000 15,000 Lunch Overhead Selling and administrative Total Selling and administration 17 10 8 $65 Total NYT is subject to an income tax rate of 40 percent.
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