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Venice Ghost Tours sells guided ghost-walks of the alleyways of Venice, Italy. Last month, they...

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Accounting

Venice Ghost Tours sells guided ghost-walks of the alleyways of Venice, Italy. Last month, they sold 1,800 tickets for $200 each. They provide you with the following breakout of their costs related to these tours last month:
Variable Costs per Ticket Sold Fixed Costs
Venetian Tourism Tax $20 Tour Guide Wage $12,000
Overhead $35 Administrative $10,000
Administrative Costs $5
Insurance $7
Total $67 Total $22,000
In addition to the Venetian Tourism Tax listed above, they also pay Italian income tax at a rate of 27% on their net income.
Required:
(a) What is the company's break-even point for this month in tickets?
(b) How many tickets must the company sell to have an after-tax profit of $60,000?
(c) Prepare a contribution margin income statement based on requirement b.(NOTE: Don't try to type requirement c into My Business Course. Type in your contribution margin number only. Prepare your income statement on your working paper.)

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