Question

a. The Troy Co. has the following information available: Total fixed costs $400,000 Expected sales (units)...

a. The Troy Co. has the following information available: Total fixed costs $400,000 Expected sales (units) 100,000 Selling price per unit $10.00 Contribution margin per unit $7.50 Tax rate 30% What is the after-tax net income? Question 1 options: $350,000 $280,000 $420,000 $400,000

b.

Suppose a hotel has annual fixed costs applicable to its rooms of $2,000,000 for its 300-room hotel. Average daily room rents are $50 per room and average variable costs are $10 for each room rented. It operates 365 days per year. If the hotel is completely full throughout the year, what is the operating income for one year?

Question 7 options:

$1,280,000

$2,380,000

$4,380,000

$3,180,000
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The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

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