Part a breakeven analysis for santa voyages santa voyages inc., is a

Part A

Breakeven analysis for Santa Voyages

Santa 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 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 including: maintenance, depreciation, marketing, licenses , Etc.. Totaling approximately $ 85000.


  1. Compute the revenue and variable expenses for each cruise
  2. Compute the number of cruises the Sailing bird must have each year to breakeven. Is there any equation that can be used to determine this number?
  3. The owner expects a total return on capital and remuneration for being the captain of $ 125000. Using the concept of “contribution margin” and a cost-volume-profit notion, estimate how many cruises the Sailing bird needs to make to reach this objective? Is there a realistic expectation?
  4. Prepare a contribution margin income statement for Santa Voyages Inc.,

Part B

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:


October ($)

November ($)

December ($)

Cash Sales




Sales on Account




Total Sales





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 and also a Cash Budget for December.  Show all working clearly


Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more