United Snack Company sells 40-pound bags of peanuts to university dormitories for $48 a bag. The fixed costs of this operation are$509,600, while the variable costs of peanuts are $0.29 per pound.a. What is the break-even point in bags?Break-even pointbags

The break-even point is the point where the firm earns no profit no loss. At this point, the firm…

Answered: United Snack Company sells 40-pound…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 62P

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United Snack Company sells 40-pound bags of peanuts to university dormitories for $42 a bag. The fixed costs of this operation are $417,120, while the variable costs of peanuts are $0.26 per pound. a. What is the break-even point in bags? Break-even point b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags. Bags 12,000 Loss 25,000 Profit Profit/Loss Bags 20,000 25,000 bags c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? Note: Round your answers to 2 decimal places. Degree of Operating Leverage Amount
Yarn Basket, Ltd., sells handminus−knit scarves. Each scarf sells for $35. The company pays $350 to rent a vending space for one day. The variable costs are $10 per scarf. What total revenue amount does the company need to earn to break even?
Homeward Hardware buys cat litter for $6 less 20% per baq. The store's overhead is 45% of cost and the owner requires profit of 20% of cost. 1. For how much should the bags be sold? 2. What is the amount of markup included in the selling price? 3. What is the rate of markup based on selling price? 4. What is the rate of markup based on cost? 5. What is the break-even price? 6. What operating profit or loss is made if a bag is sold for $6?
United Snack Company sells 40-pound bags of peanuts to university dormitories for $60 a bag. The fixed costs of this operation are $671,600, while the variable costs of peanuts are $0.35 per pound. What is the break-even point in bags? Calculate the profit or loss (EBIT) on 11,000 bags and on 24,000 bags. What is the degree of operating leverage at 19,000 bags and at 24,000 bags? Note: Round your answers to 2 decimal places. If United Snack Company has an annual interest expense of $35,000, calculate the degree of financial leverage at both 19,000 and 24,000 bags. Note: Round your answers to 2 decimal places. What is the degree of combined leverage at both a sales level of 19,000 bags and 24,000 bags? Note: Round your answers to 2 decimal places.
College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company’s annual fixed expenses are $40,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the following requirements, ignore income taxes.)Required:1. Using the contribution-margin approach, compute the company’s break-even point in units (pizzas).2. What is the contribution-margin ratio?3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation.4. How many pizzas must the company sell to earn a target profit of $65,000? Use the equation method.
1. University Catering sells 50 pound bags of popcorn in the university dormitories for P10 abag. Fixed cost of this operation are P80,000 while variable costs of the popcorn are P.10per pound.a. What is the BEP in bags?b. Calculate the EBIT or loss on 12,000 bags and 25,000 bags.c. Calculate the EBIT or loss on 25,000 bags.
Pete Corporation produces bags of peanuts. Its fixed cost is $17,300. Each bag sells for $2.62 with a unit cost of $1.82. What is Pete's breakeven point?
Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509
It costs a small bakeshop a 18,000 to produce wheat loaves. This is a one time foxed cost that covers salaray,electricity,water and rentals. Variable costs are 64 per wheat loaf which is sold at 100 each. a.) find the break even quantity and the break even sales revenue. b.) How many wheat loaves must be sold to recover fixed cost?
Austin Avenue Clothiers pays $52 each for sports coats and has a fixed monthly cost of $780. The store sells the coats for $71 each. (a) What is the linear cost-volume function C(x)? C(x) = (b) What is the linear revenue function R(x)? R(x) = (c) What is the break-even number of coats? (Round your answer up to the nearest whole number.)
Mo's Delicious Burgers Inc. sells food to university cafeterias for $43 a box. The fixed costs of this operation are $243,200, while the variable cost per box is $24. a. What is the break-even point in boxes? (Do not round intermediate calculations.) Break-even point boxes b. Calculate the profit or loss on 13,000 boxes and 26,000 boxes. (Do not round intermediate calculations. Input all answers as positive values.) Вохes Profit/Loss Amount (Click to select) |(Click to select) 13,000 26,000 c-1. What is the DOL at 18,200 boxes and 28,000 boxes? (Round the final answers to 2 decimal places.) Воxes DOL 18,200 28,000 X c-2. This part of the question is not part of your Connect assignment. d. If the firm has an annual interest payment of $11,400, calculate the DFL at both 18,200 and 28,000 boxes. (Round the final answers to 2 decimal places.) Воxes DFL 18,200 28,000 X. e. What is the DCL at both sales levels? (Round the final answers to 2 decimal places.) Вохes DCL 18,200 28,000
Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $92,000, while the variable costs of grapes are $0.10 per pound. a. What is the break-even point in bags? (Round your answer to 2 decimal places.) Break-even point bags b. Calculate the profit or loss (EBIT) on 16,000 bags and on 34,000 bags. Bags Profit/Loss Amount 16,000 34,000 c. What is the degree of operating leverage at 26,000 bags and at 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of Operating Leverage 26,000 34,000 d. If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both 26,000 and 34,000 bags. (Round your answers to 2 decimal places.) Bags Degree of Financial Leverage 26,000 34,000 e. What is the degree of combined leverage at both 26,000 and 34,000 bags? (Round your answers to 2 decimal places.) Bags Degree of…

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