Ahmad sells Satay Johor during the 15". Convocation fiesta at UTHM. He sets up the stall by himself, his son and one of his workers. The costs included are the rent of the stall which cost about RM400 per day, salary of the workers, RM100 per day, and the raw Satay which cost about 20 cents per stick. (а) Explain the implicit cost involved in this case. (b) Identify the fixed cost and variable cost respectively. If Ahmad sells Satay Johor at 40 cents per stick, how many sticks are needed to be sold per day in order to achieve the breakeven point? (c)
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- What is Adam’s current level of fixed costs? (Use the rounded contribution margin per unit calculated in the previous part.) Current level of fixed costs $_____________ AdamGranger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $14 and sells them for $20. Adam’s current breakeven point is 15,000 hats per year. What is Adam’s current level of fixed costs? (Use the rounded contribution margin per unit calculated in the previous part. contribution margin per unit IS $6.00Bernard Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation $500 Variable cost of each window installation $400 Annual fixed costs $150,000 Use (a) the Equation method and (b) the contribution method to calculate operating income if Bernard installs 2,000 windows. Use (a) the Equation method to calculate operating income if Bernard installs 2,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) ( × ) - ( × ) - = Operating income ( × ) - ( × ) - =To pay for his academic fees, Tarek, a college student, is selling a computer accessory to other students. His cost to purchase each piece is $70, and he is planning to sell the accessories for $104each. Fixed costs for advertising amount to $350. (a) Compute the contribution margin. (b) Compute the contribution rate. (c) Compute the break-even point in units. (d) Compute the break-even point in sales dollars.
- Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushionsWindows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation $500 Variable cost of each window installation $400 Annual fixed costs $150,000 Use (a) the Equation method and (b) the contribution method to calculate operating income if Bernard installs 2,000 windows. Use (a) the Equation method to calculate operating income if Bernard installs 2,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) ( SP × Q ) - ( VCU × Q ) - FC = Operating income ( $500 × 2,000 ) - ( $400 × 2,000 ) - $150,000 = $50,000 Next, use (b) the contribution method to calculate operating income if Bernard…A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must beproduced and sold per annum to break-even? Support your answer with computations and also by graphical solution. (Kindly provide a COMPLETE and CLEAR solution. Also, write legibly)
- Perform a break-even analysis showing computation of the (a) contribution margin; (b) contribution rate; (c) break-even point in units; (d) break-even point in sales dollars. Lorne is considering working for Part-Time Painters. He would operate as an inde-pendent painter, but the jobs would be given to him by the company. In the com-pany’s advertisements, $100 would be charged for each room painted. The painter would then receive 80% of the amount billed. For each job, the painter would supply paint and brushes, at a cost of $38. Each painter must have his or her own ladders, drop cloths, and other tools, at a cost of $720.Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Sohan Ltd. manufactures three components A, B, and C, the cost of which is asfollows: You are to present a report to the management of the company showing whether it should continue to manufacture these components or whether it should buy them from a supplier, who has quoted the following price: A Rs.30; B Rs.15; C Rs.25.
- Benjamin purchased dress shirts to sell in his clothing store that has overhead expenses equal to 11.00% of costs. To make a profit of 12.00% of the cost, he sells them at a regular price of $65.00 each. A)What rate of markdown is required to sell the shirts at break-even? B) What rate of markdown is required to sell the shirts at cost?In a recently opened shopping mall, Jagdeep sells handmade coffee mugs in a booth for $25 each and has calculated that he needs to sell 200 mugs to break even. Calculate his total variable costs to break even if his fixed costs are $2400? Which of the following answers is correct?A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must be produced and sold per annum to break-even? Support your answer with computations and also by graphical solution.