Table 13-7
The Flying Elvis Copter Rides
-Refer to Table 13-7. What is the value of R?
A)$16.67
B)$50
C)$136.67
D)$360

Question

Table 13-7
The Flying Elvis Copter Rides 
-Refer to Table 13-7. What is the value of R?
A)$16.67 
B)$50 
C)$136.67 
D)$360

Quizplus · Accepted Answer

To calculate the value of R, we need to first find the total revenue generated by the business, which is given in the last row as $8,200. Then, we need to subtract the total variable costs from the total revenue to find the contribution margin, which is given in the second row as $5,160. Finally, we can use the contribution margin per unit to calculate the number of units needed to break even. This value is given in the fourth row as 38.33 (rounded up to 39). 
Now, to find the value of R, we need to divide the total fixed costs by the number of units needed to break even. This gives us: 
R = $1,960 / 39 = $50.51 
We can round this value down to the nearest dollar, which gives us an answer of $50. Therefore, the best choice is C.

Table 13-7 The Flying Elvis Copter Rides