Carol is starting a virtual craft workshop business. Currently she is planning to have 3 different workshops to offer. Carol's Crafts plans to call each workshop a "party". She has already experimented with Party A where she charges $45 per guest. Carol's has been hosting 40 guests per week. Her variable costs for Party A are $600 per week. Carol has fixed costs of $7, 000 and knows that her fixed costs will not increase if she can host more "parties" each week. Carol plans to add Party B and Party C to her weekly workshop schedule. Party B will feature a smaller kid's craft with a Workshop fee of $25 per guest and variable costs of $15. Party C will be a weekly craft club with a club fee of $60 guest and variable costs of $20. Carol plans a party mix with a ratio of 1 Party B for every 2 Party Cand 7 Party A for every Party B. (7:1:2). Carol plans to host 250 guests each week at parties. Based on this information please help Carol predict her potential net income to see if she can make this her new full-time income.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Party A
Party B
Party C
Totals
Sales Mix
100%
Selling Price
Unit Variable Costs
Contribution Margin
Weighted average Contribution
Margin
Fixed Costs per month
WACM Break Even Point
WACM Break-Even Point per Party
Units Sold (total guests)
250
Total Revenue per Week
Total Variable Costs Per Week
Total Fixed Costs Per Week
Total Costs per Week
Profit or Net Income Per Week
Transcribed Image Text:Party A Party B Party C Totals Sales Mix 100% Selling Price Unit Variable Costs Contribution Margin Weighted average Contribution Margin Fixed Costs per month WACM Break Even Point WACM Break-Even Point per Party Units Sold (total guests) 250 Total Revenue per Week Total Variable Costs Per Week Total Fixed Costs Per Week Total Costs per Week Profit or Net Income Per Week
Carol is starting a virtual craft workshop business. Currently she is planning to have 3 different
workshops to offer. Carol's Crafts plans to call each workshop a "party". She has already experimented with
Party A where she charges $45 per guest. Carol's has been hosting 40 guests per week. Her variable costs for
Party A are $600 per week. Carol has fixed costs of $7, 000 and knows that her fixed costs will not increase if
she can host more "parties" each week. Carol plans to add Party B and Party C to her weekly workshop
schedule. Party B will feature a smaller kid's craft with a Workshop fee of $25 per guest and variable costs of
$15. Party C will be a weekly craft club with a club fee of $60 guest and variable costs of $20. Carol plans a
party mix with a ratio of 1 Party B for every 2 Party Cand 7 Party A for every Party B. (7:1:2). Carol plans to
host 250 guests each week at parties. Based on this information please help Carol predict her potential net
income to see if she can make this her new full-time income.
Party A
Party B
Party C
Totals
100%
Sales Mix
Selling Price
Unit Variable Costs
Contribution Margin
Weighted average Contribution
Margin
Fixed Costs per month
Transcribed Image Text:Carol is starting a virtual craft workshop business. Currently she is planning to have 3 different workshops to offer. Carol's Crafts plans to call each workshop a "party". She has already experimented with Party A where she charges $45 per guest. Carol's has been hosting 40 guests per week. Her variable costs for Party A are $600 per week. Carol has fixed costs of $7, 000 and knows that her fixed costs will not increase if she can host more "parties" each week. Carol plans to add Party B and Party C to her weekly workshop schedule. Party B will feature a smaller kid's craft with a Workshop fee of $25 per guest and variable costs of $15. Party C will be a weekly craft club with a club fee of $60 guest and variable costs of $20. Carol plans a party mix with a ratio of 1 Party B for every 2 Party Cand 7 Party A for every Party B. (7:1:2). Carol plans to host 250 guests each week at parties. Based on this information please help Carol predict her potential net income to see if she can make this her new full-time income. Party A Party B Party C Totals 100% Sales Mix Selling Price Unit Variable Costs Contribution Margin Weighted average Contribution Margin Fixed Costs per month
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