
Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Christmas season is coming up and Kentucky Supermarket want to sell Noche
Buena Package. If Kentucky produces its own Noche Buena Package it will in-
clude the following as shown in the table below:
Kentucky
Package
Spaghetti
Spaghetti
Sauce
Comed
Meat Loaf
Beef
Quantity
1
2
2
Selling Price
119.9
Product VC
75.3
85.5
62.4
34.15
3
36.5
Cheese
1
82.15
Fruit Salad
Pineapple
Tidbits
Nata De
Coco
All Purpose Condensed
Cream
Container
2
153.75
1
1
124.95
76.2
73
27.65
3585
44.95
312
0
1057
Based on Kentucky Supermarket best estimate forecast, it will be able to sell
16,000 total packages. In addition, it aims to achieve P2,250,000 after tax profit.
Based on forecast, a total of 9,200 Kentucky Package can be sold.
What will be the new selling price set by Kentucky Supermarket based on
the above information?
Based on their forecast, other Information will be as follows:
SAVC
5% of Selling Price
Other VC
Transportation
Handling
Display Rack
Fixed OH Cost
Fixed SA Cost
200 Batch
100 Hande
300 m²
1.450.00/Batch
2,000.00/Handle
450.00/m
535,300.00
232,700 00
Kentucky Supermarket is paying a fixed 25% Tax Rate. In each package, Kentucky
Supermarket targets to have a P185.57 After Tax Profit.
How many packages do Kentucky Supermarket need to sell to achieve that
target?
If Kentucky chose to purchase Noche Buena Package from a supplier, it will have
a Product Variable Cost of P957.58. Other costs will be as follows:
SAVC
Other VC
Ordering
Display Rack
Fixed OH Cost
Foxed SA Cost
No Change
175 Order
300 m²
2,500.00/Order
450.00/m²
340,30000
2:32,700.00
At what point will Kentucky Supermarket can't decide whether to do produce
its own Noche Buena Package or just buy it from a supplier?
Kentucky Supermarket decided just to sell both during the Christmas Season.
Both packages will have the same product variable cost, and SA variable cost.
The cost information will be as follows:
SAVC
Other VC
Transportation
Handling
No Change
110 Batch
Ordering
Display Rack
Fixed OH Cost
Fixed SA Cost
65 Handle
55 Order
+1.450.00/Blatch
2,000 00/Handle
+2500.00/ Order
450.00/m²
435 000 00
+232,700.00
Screens 1-2 of 2
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