Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Oct-2001 - Nov-2016

Category > Accounting Posted 05 Aug 2017 My Price 6.00

Harry’s Horseback Rides

Explaining sales and cost changes. You have acquired the following data for Years 1 and 2 for Harry’s Horseback Rides.

Year 1 Year 2

Dollar Increase

Revenue from Rides ................................................

$750,000

  

100.0%

$840,000

  

100.0%

$90,000

  

Variable Costs of Operations.................................

495,000

  

66.0

560,000

  

66.7

65,000

  

Contribution Margin ...............................................

$255,000

  

34.0%

$280,000

  

33.3%

$25,000

  

Price per Person per Hour .....................................

$10

    

$12

        

Write a short report to Harry’s uncle who loaned Harry the money to start this business. Explain the cause of the increase in total contribution margin between Year 1 and Year 2. Your report should consider the effect of each of the following: change in price per person per hour, change in volume, and change in operating costs per admission.

Answers

Maurice Tutor
(5)
Status NEW Posted 05 Aug 2017 12:08 AM My Price 6.00

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