  Textbook Solutions Expert Q&A Study Pack Practice 

Find solutions for your homework Search

home / study / business / accounting / accounting questions and answers / dream world resorts maintains a water park and has experienced a ste…

Question: Dream world Resorts maintains a water park and has experie… Post a question
Answers from our experts for your tough
homework questions

Dream world Resorts maintains a water park and has experienced a

steady growth in its sales for the past Enter question
five years. Increased
competition, however, has led the owners to believe that an
aggressive advertising
campaign will be necessary next year to
maintain the present growth. In order to launch advertising
campaign the next year, following data has been compiled for the
year 2005.
Variable
cost                                    
           
Rs.137.50 per ticket
Continue to post
Total fixed cost for the
year                       
Rs.1,350,000
1 question remaining
Sales
price                                       
           
Rs.250.00 per ticket
Expected sales 2005 – 20,000
ticket        Rs.5,000,000
Income tax
rate                                            
           
35%
The resort has set sales target for 2006 at a level of
Rs.5,500,000 or 22,000 tickets.
Snap a photo from your
phone to post a question
Required:
We'll send you a one-time download
link
1. The project after tax net income for the year
2005.                               

2. Number of tickets at breakeven point during the year

2005.              
888-888-8888 Text me
3. After tax net income for the year 2006 if an additional fixed
marketing expense of Rs.112,500 is spent on
advertising in the year
2006 (with all other costs remaining constant) to attain the sales
target for the year
By providing your phone number, you agree to receive a one-tim
2006.                     automated text message with a link to get the app. Standard
messaging rates may apply.
4. The breakeven point in value for the year 2006 if additional
Rs.112,500 is spend on
advertising.                                                              
                       

5. The required sale (value) to equal after tax net income for the
year 2005 if additional Rs.112,500 is spent on
advertising in the
year 2006.   My Textbook Solutions

6. The maximum amount that can be spent on additional advertising

at a sales level of 22,000 tickets, if an
after tax net income of
Rs.600,000 is desired.

please answer part 5 and 6 as soon as possible.

Structured Electricity Introductory

Expert Answer Computer... and... Statistics
6th Edition 3rd Edition 0th Edition

View all solutions

Anonymous answered this
Was this answer helpful? 0 0
246 answers
 

View comments (1)

Practice with similar questions

Q: Question # 3
Dream world Resorts maintains a water park and has experienced a
steady growth in its sales for the
past five years. Increased
competition, however, has led the owners to believe that an
aggressive advertising
campaign will be necessary next year to
maintain the present growth. In order to launch advertising
campaign the
next year, following data has been compiled for...

A: See answer

Up next for you in Accounting

Question # 4 Gullever
Problem 6-2A (Video)

Engineering Ltd,
Large Corporation has

manufactures lathe
collected the following

machines. Its budget data

informaciones en $270,0…
for next year is as under:

See more questions for

 See more questions for
Rs. Sales (2,000 units)

8,000,000 Variable cost

subjects you study
3,000,000 Contribution

See answer See answer

COMPANY LEGAL & POLICIES CHEGG PRODUCTS AND SERVICES CHEGG NETWORK CUSTOMER SERVICE

About Chegg Advertising Choices Cheap Textbooks Mobile Apps EasyBib Customer Service
Chegg For Good Cookie Notice Chegg Coupon Sell Textbooks Internships.com Give Us Feedback
College Marketing General Policies Chegg Play Solutions Manual Thinkful Help with eTextbooks
Corporate Development Intellectual Property Rights Chegg Study Help Study 101 Help to use EasyBib Plus
Investor Relations Terms of Use College Textbooks Textbook Rental Manage Chegg Study
Jobs Global Privacy Policy eTextbooks Used Textbooks Subscription

Join Our Affiliate Program Manage Preferences Flashcards Digital Access Codes Return Your Books

Media Center Honor Code Learn Chegg Money Textbook Return Policy

Site Map Honor Shield Chegg Math Solver

© 2003-2021 Chegg Inc. All rights reserved.