Elise and her friend Eloi developed an online car repair training course and sell it for $69 per course. The contribution margin per course is $26 and to break even they need to have a total revenue of $12,420 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 3,020 courses this year?
Q: Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the…
A: Contribution required = P 15000/ P 3000 Contribution required = P5 per plant Variable cost per plant…
Q: Yerke Company makes and sells jungle gyms and tree houses for children. For jungle gyms, the price…
A: Break-even point is the level of sales at which the firm earns no profit and incurs no losses. Total…
Q: Owen Conner works part-time packaging software for a local distribution company in Indiana. The…
A: Total variable cost per unit = Direct labor + Direct material = 3.50 + 4.50…
Q: Racer Industries has fixed costs of $900,000. The selling price per unit is $180, and the variable…
A: Given: Fixed Cost = $900,000 Selling price per unit = $180 Variable cost per unit = $130
Q: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an…
A: This is the ratio of the operations which is derived after deducting variable expenses from sales.…
Q: It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell…
A: Increment revenue arises when the product is processed further to earn additional revenue over the…
Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…
A: The targeted sales are calculated as sum of fixed cost and target profit divided by contribution…
Q: break-even point?
A: Break even point in units = Fixed cost / Contribution margin per unit
Q: related to making this part are $89,000 per year, and allocated fixed costs are $76,000 per year.…
A: Incremental analysis is a tool used in managerial accounting when choosing between alternative…
Q: Jamie Quinn, a sole proprietor, has the following projected figures for next year: Selling price…
A: Formula: Break even point in units = Fixed cost / ( Selling price per unit - variable cost per unit…
Q: The XYZ company collected recipes from members and published a cookbook. The book sells for $18 per…
A: working formula for Breakeven point = Fixed cost/Contribution margin per unit submit the values in…
Q: A retired auto mechanic hopes to open a customizing shop installing heated or ventilated seats. The…
A: Fixed Costs are those costs which do not change with the change in the production level and as well…
Q: Radar Company sells bikes for $470 each. The company currently sells 4,300 bikes per year and could…
A: Solution a: Special offer analysis Per unit Total Sales $440.00 $154,000.00 Variable costs…
Q: Bosco Company sells boxes of cookies and has total fixed costs of $200,000 per month. Variable…
A: Given, Seeking price = 10 per unit Variable cost = 8 per unit Contribution = 2 per unit Fixed cost…
Q: A car manufacturing firm wishes to introduce a new line of tires into its product range. It costs…
A: Given: Fixed cost = $50,000 Price per tire = $1.20 Total cost = $300,000
Q: Elise and her friend Eloi developed an online car repair training course and sell it for $67.50 per…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: Mary Williams, owner of Williams Products, is evaluating whether to introduce a new product line.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: After leaming the calculations presented, you can now compute the projected costs by month on your…
A: Projected revenue and expense are determined to aid better decision making.
Q: Vallie Enterprise sells a product that costs $200 per unit and has a monthly demand of 500 units.…
A: Economic order Quantity: It is the quantity level at which holding costs and ordering costs is…
Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…
A: The break even sales are the sales at point when business earned no profit or loss
Q: Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company…
A: Given, Plastic pitchers Glass pitchers Selling Price 40 47 Variable cost per unit 30 26…
Q: The Pluto Company has been buying a given item in lots of 3,200 units which is quarterly supply. The…
A: no of lots=4 cost per order=15 Total cost=inventory cost+order cost+carrying cost…
Q: Upper Hutt Bakery Warehouse uses specialized ovens to bake its bread. One oven costs $1,000,000 and…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: One machine has to be purchased to produce a certain product. Two options are available. Machine A,…
A: 1) Machine A Purchase Cost = 900,000 Production per hour = 50 units Variable cost per Hour = $40…
Q: Unan Inc. has decided to focus strictly on producing and selling one type of pillow. For the coming…
A: There are two type of costs which are incurred in business. Fixed costs are costs which will not…
Q: A furniture manufacturer has an annual overhead cost of P120,000 plus 20% of the sales in pesos.…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…
Q: Hawk Homes, Inc., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is…
A: Disclaimer: Since you have put a multi-part question, we are providing you with the solutions to the…
Q: José Ruiz wants to start a company that makes snowboards. Competitors sell a similar snowboard for…
A: The product should be priced where the company earn a profit. To earn profit sales price should be…
Q: AdamGranger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He…
A: Break even point refers to that volume of operation where, there is no profit or loss to an…
Q: Reagan, Inc., has developed a chew-proof dog bed—the Tuff-Pup. Fixed costs are $204,400 per year.…
A: Answer 1) Calculation of number of units to be sold to Break-even Number of units to be sold to…
Q: You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt.…
A: Break even point in units = Fixed costs / contribution margin per unit Break even point in sales…
Q: Ella buys a machine for $ 18,500, less discounts of 20% and 15%. The overhead expenses are 8% on…
A: Selling price refers to the actual price on which the seller sells the goods or services to the…
Q: A small coffee shop currently offers a cup of cafe latte for P107. The variable costs are P62 per…
A: Break Even sales is the point of sales where the firm neither incurs any losses or earns any gains…
Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…
A: Break even point in units = Fixed cost/contribution margin per unit Whereas, Contribution margin…
Q: A publishing company is planning on developing an SPSS Manual for graduate students in doctoral…
A: Contribution per unit = Selling price per unit - Variable cost per unit…
Q: LVR Printing Services estimates that it will require 1,000 reams of a certain type of paper in a…
A: Economic order quantity is the optimum units to be ordered by the business entity. At this level of…
Q: Radar Company sells bikes for $500 each. The company currently sells 4,150 bikes per year and could…
A: The special offer is accepted by business only if it increases the profits of the company.…
Q: Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: José Ruiz wants to start a company that makes snowboards. Competitors sell a similar snowboard for…
A: Selling price: It can be defined as the amount that is paid by the buyer for the purchase of…
Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P58 per…
A: The Break-even selling price is the price where the organization neither earns any profit nor bears…
Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P63 per…
A: Here, Number of Units Sold is 10,079 Sales Price per cup is P106 Variable Cost per cup is P63 Profit…
Q: You are going to open a business making custom cabinets. You can sell each cabinet for $80. It takes…
A: PLEASE LIKE THE ANSWER NOTE : AS QUESTION SPECIFY "Part D is needed"
Q: The owner of old -Fashioned Berry Pies, S. Simon, is contemplating adding a new line of pies, which…
A: Profit is the amount that is left after deducting all the costs incurred.
Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…
A: Contribution margin: It is the difference between the revenue and the variable cost.
Step by step
Solved in 5 steps
- Paragraph Question 1: Darby is running a flower stand, and is selling a single bouquet for $31.50. Her contribution margin is $24.57 per bouquet and the breakeven sales in dollars for Darby's flower stand are $700 per day. How much can she pay per day in fixed costs to run the stand? T1. ABC Taxi has an average fixed cost of $8,000 a year for each car. Each mile driven has variable cost $.40 and collect fares of $.60. How many miles a year does each car have to travel before making profit? a. ABC company is contemplating adding a new line of product, which will require leasing new equipment for a monthly payment of $12,000. Variable costs would be $15.00 per product, and selling price per product is $40. What would be profit or loss if business sell 600 of these products? b. If 800 quantity of products can be sold, and a profit target is $10,000, what price should be charged for each product?K A person buys a phone for $88 and signs up for a single ine phone plan with 2000 monthly anytime minutes. The plan costs $115.93 per month Write an equation that can be used to determine the total cost. C(t), of this phone plan fort months Then, find the cost for 23 months, assuming that the number of minutes the person uses does not exceed 2000 per month An equation that can be used to determine the total cost Con of the phone plan for 1 months is Cm= (Use integers or decimals for any numbers in the expression) The cost for 23 months, assuming that the number of minutes the person uses does not exceed 2000 per month, s empts ) of -
- QUESTION 4 It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell for $38 each. Alternatively, Mills could process the units further into a more complex product, which would cost an additional $31 per unit. Mills could sell the more complex product for $72 each. What is the incremental revenue if Mills decides to process further?Please answer using break-even analysis formula Nick is planning on starting a mobile pizza oven. He is expecting his customers to spend $20 per pizza. It is estimated that the costs associated with the ingredients will be $5 per pizza. In addition, his fixed costs for renting the mobile oven is $150 per day. 1) How many pizzas does Nick need to sell to break-even per day? 2) If Nick wants to make a profit of $300 and sell 25 pizzas per day, calculate the price he should charge per pizza. 3) If Nick increases the price per pizza to the amount found in part (b) then explain the effect on the break-even number of pizzas sold. Assume the fixed costs and the variable costs remain unchanged. Do not re-calculate the break-even quantity, x, for this question however you may quote the break-even formula and contribution margin to aid your explanation.2. lle Patrice has just graduated university and is thinking about opening "Surf Shop" to sell surfboards. Basic surfboards are manufactured by a local company and the cost to purchase each surfboard is $350. Patrice plans to paint a scene on each surfboard himself so that each surfboard is unique. The estimated cost for paint and supplies is $50 per unit and the labor cost for painting the scene is zero. Pat estimates that each unique surfboard can sell for $1,000.00. Other costs include rent for the shop of $24,000 annually and advertising of $16,000 annually. Patrice also plans to hire a full- time manager at an annual salary of $80,000. Required: You must show all your calculations in order to get marks. If you provide the answer only you will not receive any marks. 1. What is the contribution margin per unit in $$. What is the contribution margin ratio? re to search cer
- The owner of shop is contemplating adding a new product which will require additional monthly payment of Br.6000, variable costs would be Br. 2 per new product & its selling price is Br. 7 each What would be the profit(loss) be if 1000 unit were sold in month?E5-17 (Algo) Determining Cost Behavior, Preparing Contribution Margin Income Statement [LO 5-1, 5-5) Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required 1 Required 3 Variable costs Fixed costs 515 $ 72,615 149,300 $ 221,915 Number of Canoes Produced and Sold Total costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $505 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 865 canoes. Complete the contribution margin income statement for the company. Required 4 Total cost per unit 7 7 Complete the table. Note: Round your cost per unit answers to 2 decimal places. $ $ 665 $ 7 515 72,615 149,300 221,915 $ 815 0.00…2.10 Eliza sells flowers in Covent Garden. Her fixed costs are Birr 50 per day. Her average sales price is Birr 4 per flower. She is currently selling 400 flowers per day. Her current variable cost is Birr 3 per flower. Eliza anticipates that her daily sales will increase to 500 flowers per day. How much could her variable cost per flower increase for her to still earn the same daily profits as before?
- QUESTION 1 Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard cost of one chair is as follows: GHe Materials 15 Direct labour 8 Variable overheads 7 Required: 1.Calculate for one month 2. The variable cost of one chair b. the breaker en point 3. The profit if 200 chairs are sold 4. The number of chairs sold to give profit of GHe4,000As the operator of XYZ Fitness gym, you calculate your demand equation to be x = -0 .0 6 p + 8 4 where x is the number of members in the club and p is the annual membership fee you charge per member. Your annual operating costs are a fixed cost of $20,000 per year plus a variable cost of $20 per member. Find the annual revenue function, in terms of p. Find the annual cost function, in terms of p Find a simplified expression for the annual profit function, in terms of p At what price should you set the annual membership fee to obtain the maximum revenue? What is the maximum possible revenue?Question 1 What would be the BEP in units sales if the company decides to: Increase the Sales Price from $100 to $105 by spending annually $5000 for advertisement. Question 2 What would be the BEP in units sales if the company decides to: Increase the Sales Price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission?Question 3 Which one of the following options provides better units BEP for the company? Option A: Increase the Sales Price from $100 to $105 by spending annually $5000 for advertisement. Option B: Increase the Sales Price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission. Option A Option B Both options are same None of the OptionsUse the available pick lists from within the three boxed areas to change values, noting how the break-even units change within the green - shaded area. Think critically about why the changes in…