a) What is the break-even point for each oven? b) what is fixed coast? c) what is revenue? d) variable coast? what is BEP for pizzas?
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Hw.3.
Jenelle Heinke, the owner of Ha'Peppas Pizza is considering a new oven in which to bake the firm's signature disk, veggie pizza. Oven type A can handle 25 pizzas per hour. The fixed costs with oven A are $25,000 and the variable costs are $2.50 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed cost associated with oven B is $30,000 and the variable costs are $1.50 per pizza. The pizzas sell for $15 each.
a) What is the break-even point for each oven?
b) what is fixed coast?
c) what is revenue?
d) variable coast?
what is BEP for pizzas?
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- Janelle Heinke, the owner of HaPeppast, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00 per pizza. Oven B is larger and can handle 42 pizzas an hour. The fixed costs associated with oven B are $32,500 and the variable costs are $1.00 per pizza. The pizzas sell for $14.00 each a) The break-even point in units for oven type A units (round your response to the nearest whole number)Owner Shan Mu is considering franchising her Noodles by Mu restaurant concept. She believes people will pay $10.00 for a large bowl of noodles. Variable costs are $5.00 per bowl. Mu estimates monthly fixed costs for a franchise at $9,000. Requirements 1. Use the contribution margin ratio approach to find a franchise’s breakeven sales in dollars. 2. Mu believes most locations could generate $61,500 in monthly sales. Is franchising a good idea for Mu if franchisees want a minimum monthly operating income of $21,000? Explain your answer.Reagan, Inc., has developed a chew-proof dog bed—the Tuff-Pup. Fixed costs are $204,400 per year. The average price for the Tuff-Pup is $36, and the average variable cost is $22 per unit.Currently, Reagan produces and sells 20,000 Tuff-Pups annually.Required:1. How many Tuff-Pups must be sold to break even?2. If Reagan wants to earn $95,900 in profit, how many Tuff-Pups must be sold? Prepare a variable-costing income statement to verify your answer.3. Suppose that Reagan would like to lower the break-even units to 12,000. The company does not believe that the price or fixed cost can be changed. Calculate the new unit variable costthat would result in break-even units of 12,000. (Round to the nearest cent.)4. What is Reagan’s current contribution margin and operating income? Calculate the degree of operating leverage (round your answer to four decimal places). If sales increased by 10percent next year, what would the percent change in operating income be? What would the new total…
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- M4 Engineering is considering an investment in one of two machines. The CNC machine will increase productivity from producing 150 airplane mounting clamps per hour to producing 290 per hour. The contribution margin per unit is $0.32 per clamp. Assume that any increased production of clamps can be sold. The second machine is an automatic packing machine. The packing machine will reduce packing labor cost. The labor cost saved is equivalent to $21 per hour. The CNC machine will cost $260,000, have an eight-year life, and will operate for 1,800 hours per year. The packing machine will cost $85,000, have an eight-year life, and will operate for 1,400 hours per year. M4 Engineering seeks a minimum rate of return of 15% on its investments. Calculate the NPV and PV index for both machines (the packing machine will have a higher PV index). Utilize the PV tables from chapter 11/ chapter 25 for your calculations. What machine should be purchased? Address both financial and non-financial reasons…Elise and her friend Eloi developed an online car repair training course and sell it for $67.50 per course. The contribution margin per course is $23.00 and to break-even they need to have a total revenue of $32,000.00 per annum. a. What is the break-even volume? Round up to the next whole number b. What is the fixed costs per annum? Round to the nearest cent c. What is the total revenue if they sell 3,050 courses this year?Common costs. Tate Inc. and Booth Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Tate rents the machine on its own, it will cost $26,000. If Booth rents the machine alone, it will cost $14,000. If they rent the machine together, the cost will decrease to $36,000.