Straight-line amortization for bond premium or discount
Patino Company issued $400,000, 9%, 20-year bonds on January 1, 2010, at 103. Interest is payable semiannually on July 1 and January 1. Patino uses straight-line amortization for bond premium or discount.
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The round-trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include $10,000 in advertising costs. What is the contribution margin per ticket?
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