Break-Even AnalysisThe Parents for Better Schools of Fresno, California,collected recipes from members and published acookbook entitled Food for Everyone. The book will sellfor $20 per copy. The chairwoman of the cookbookdevelopment committee estimated that the club neededto sell 800 books to break even on its $3,600investment.What is the variable cost per unit assumed in theParents for Better Schools' analysis? Round youranswer to the nearest cent.$[per unit

Selling Price per Unit = 20 Sale of 800 units to break even the investment of 3600.

Answered: Break-Even Analysis The Parents for…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14E

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The Parents for Better Schools of Fresno, California, collected recipes from members and published a cookbook entitled Food for Everyone. The book will sell for $20 per copy. The chairwoman of the cookbook development committee estimated that the club needed to sell 800 books to break even on its $3,600 investment. What is the variable cost per unit assumed in the Parents for Better Schools’ analysis?
The Junior League of Yadkinville, California, collected recipes from members and published a cookbook entitled Food for Everyone. The book will sell for $18 per copy. The chairwoman of the cookbook development committee estimated that the club needed to sell 2,000 books to break even on its $4,000 investment. What is the variable cost per unit assumed in the Junior League's analysis?$fill in the blank 1 per unit
Problem 2: The XYZ company collected recipes from members and published a cookbook. The book sells for $18 per copy. The company estimates that the club must sell 2000 books to breakeven on its $4,000 investment, What is the variable cost per unit assumed in this analysis?
A tree provider to plant nurseries is trying to use customer lifetime value to determine the value of its customers. Two customers are shown below. Use customer lifetime value to determine the importance of each customer. Use a 7 percent discount rate. Avg. Annual Sales Avg. Profit Margin Customer A: Customer B: $26,500 $14,000 Do not round intermediate calculans. Round your answers to the nearest dollar. NPV (Customer A): $ 25% 15% Expected Lifetime 11 years 7 years NPV (Customer B): $ What do you recommend? -Select- is more important.
A tree provider to plant nurseries is trying to use customer lifetime value to determine the value of its customers. Two customers are shown below. Use customer lifetime value to determine the importance of each customer. Use an 8 percent discount rate. Avg. Annual Sales Avg. Profit Margin 10% $12,500 $26,000 20% Do not round intermediate calculations. Round your answers to the nearest dollar. NPV (Customer A): $ NPV (Customer B): $ What do you recommend? Customer B ✓ Customer A: Customer B: is more important. Expected Lifetime 5 years 9 years
The Garden Club of Palm Springs, California, collected recipes from members and published a cookbook entitled Desert Dishes. The book will sell for $40 per copy. The chairperson of the cookbook development committee estimated that the club needed to sell 8,000 books to break even on its $40,000 investment. What is the variable cost per unit assumed in the Garden Club’s analysis?
A privately-owned summer camp for youngsters has the following data for a 12-week session: Charge per camper: $480 per week Fixed costs: $192,000 per session Variable cost per camper: $320 per week Сарасity: 200 campers a) Develop the mathematical relationships for total cost and total revenue. b) What is the total number of campers that will allow the camp to just breakeven? c) What if the profit or loss for the 12-week session if the camp operates at 80% сараcity? d) What are the marginal and average costs per camper at 80% capacity? e) Would it be ethical to charge campers different rates depending on their family's socioeconomic status? Identify and describe two points pro and two points cons for such a policy. f) Draw cash flow diagram for this problem.
K A bakery would like you to recommend how many loaves of its famous marble rye bread to bake at the beginning of the day. Each loaf costs the bakery $4.00 and can be sold for $7.00. Leftover loaves at the end of each day are donated to charity. Research has shown that the probabilities for demands of 25, 50, and 75 loaves are 35%, 25%, and 40%, respectively. Make a recommendation for the bakery to bake 25, 50, or 75 loaves each morning. Find the expected monetary value when baking 25 loaves. EMV = $ (Type an integer or a decimal.) Find the expected monetary value when baking 50 loaves. EMV=S (Type an integer or a decimal.) Find the expected monetary value when baking 75 loaves. EMV = S (Type an integer or a decimal.) Make a recommendation for the bakery to bake 25, 50, or 75 loaves each morning. The bakery should bake ▼ loaves of bread every morning.
A local Pilates studio recently began offering a monthly subscription servlce for Its patrons. Suppose a particular patron at this studio has the following willingness-to-pay schedule, per sesslon. Session willingness to Pay 1st $77 2nd $66 3rd $55 4th $44 5th $33 6th $22 Suppose this consumer would not demand any more sesslons, even for free. Also assume that the marginal cost to the studlo, per sesslon, is constant at $11. At this price and quantity, consumer surplus At a price of $71.50 per sesslon, the number of sesslons demanded by this consumer would be Is and producer surplus is Suppose the studio has devised a new pricing scheme for consumers who demand more than 1 sesslon. This pricing scheme is a subscription service, whereby consumers can pay a flat fee of $237.60 and can have up to 6 sesslons total. Using this Eubscription pricing model, this consumer would demand sessions. Under this scenarlo, consumer surplus Is and producer surplus is (Hint: For consumer surplus,…
Natasha's Flowers, a local florist, purchases fresh flowers each day at the local flower market. The buyer has a budget of $940 per day to spend. Different flowers have different profit margins, and also a maximum amount the shop can sell. Based on past experience the shop has estimated the following NPV of purchasing each type: NPV per bunch Cost per bunch Max. Bunches Roses $2 $21 25 Lilies $9 $25 10 Pansies $4 $30 10 Orchids $19 $78 5 What combination of flowers should the shop purchase each day? The profitability index for each choice is: (Round to three decimal places.)
Apply mathematical skills around cost structures and appropriate equations to answer the following, inclusive of all associated workings to maximise marks: A convenience store buys 1-gallon jugs of milk for $2.99 and sells them for $4.29. What is the margin they earn on the milk? Please round your answer to the nearest tenth of a percent.
The XYZ company collected recipes from members and published a cookbook. The book sells for $18 per copy. The company estimates that the club must sell 2000 books to breakeven on its $4,000 investment, What is the variable cost per unit assumed in this analysis?

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