Jen and Barry's ice cream shop charges $1.55 for a cone. Variable expenses are $0.25 per cone, and fixed costs total $2,200 permonth. A Valentine's Day promotion is being planned for the second week of February. During this week, a person buying a cone atthe regular price would receive a free cone for a friend. It is estimated that 725 additional cones would be sold and that 925 coneswould be given away. Advertising costs for the promotion would be $140.Required:a. Calculate the effect of the promotion on operating income for the second week of February.b. Do you think the promotion should occur?Complete this question by entering your answers in the tabs below.Required A Required BDo you think the promotion should occur?< Required ARequired B > Jen and Barry's ice cream shop charges $1.55 for a cone. Variable expenses are $0.25 per cone, and fixed costs total $2,200 permonth. A Valentine's Day promotion is being planned for the second week of February. During this week, a person buying a cone atthe regular price would receive a free cone for a friend. It is estimated that 725 additional cones would be sold and that 925 coneswould be given away. Advertising costs for the promotion would be $140.Required:a. Calculate the effect of the promotion on operating income for the second week of February.b. Do you think the promotion should occur?Complete this question by entering your answers in the tabs below.Required A Required BCalculate the effect of the promotion on operating income for the second week of February.Note: Do not round intermediate calculation and round your final answer to 2 decimal places.in operating incomeNet< Required ARequired B >

Earning before interests and taxes is called as operating income. It is calculated as deducting the…

Answered: Jen and Barry's ice cream shop charges…

Essentials Of Business Analytics

1st Edition

ISBN:9781285187273

Author:Camm, Jeff.

Publisher:Camm, Jeff.

Chapter11: Monte Carlo Simulation

Section: Chapter Questions

Problem 10P

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Jen and Barry’s ice cream shop charges $1.7 for a cone. Variable expenses are $0.31 per cone, and fixed costs total $2,100 per month. A Valentine’s Day promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 600 additional cones would be sold and that 700 cones would be given away. Advertising costs for the promotion would be $160. Required: a. Calculate the effect of the promotion on operating income for the second week of February. b. Do you think the promotion should occur?
The Katie's Card Shop sells calendars with different Colonial pictures shown for each month. The once-a- year order for each year's calendar arrives in September. From past experience the September to March demand for the calendars can be approximated by a normal distribution with mean 400 and standard deviation 100. The calendars cost $2 each, and Katie sells them for $3 each. a) If Katie throws out all unsold calendars at the end of March (i.e., salvage value is zero), how many calendars should be ordered? f Katie reduces the calendar price to $ 0.5 at the end of March and can sell all surplus calendars at this price, how many calendars should be ordered? show me how to solve this step by step in excel you are talking to a stupid person I need you to tell me in Cell A1 what to enter and so forth
The West Indies School Book Shop sells T Shirts emblazoned with the school’s name and logo. Theshirts cost $2,000 each and management estimates that 900 T Shirts will be sold during each month ofthe year. The annual holding cost for a unit of that inventory is estimated to be 1.5% of the purchaseprice. It costs the Book Shop $500 to place a single order.The maximum sale for the Book Shop for any one week is 300 shirts and minimum sales 150shirts. The supplier takes anywhere from 2 to 4 weeks to deliver the merchandise after the order isplaced.i) Determine the highest number of shirts that should be purchased by the Gift Shop in order tominimize stock administration cost.ii) What is the total stock administration costs?iii)Using the EOQ policy, determine the re-order level, minimum inventory level and maximuminventory level for the T Shirts.
Pam and Lenny’s ice cream shop charges $1.75 for a cone. Variable expenses are $0.42 per cone, and fixed costs total $2,500 per month. A "sweetheart" promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 625 additional cones would be sold and that 825 cones would be given away. Advertising costs for the promotion would be $170. Required: a. Calculate the effect of the promotion on operating income for the second week of February. (Do not round intermediate calculation and round your final answer to 2 decimal places.) b. Do you think the promotion should occur?multiple choice Yes No
Jen and Barry's ice cream shop charges $1.45 for a cone. Variable expenses are $0.22 per cone, and fixed costs total $2,500 per month. A Valentine's Day promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 650 additional cones would be sold and that 850 cones would be given away. Advertising costs for the promotion would be $135. Required: a. Calculate the effect of the promotion on operating income for the second week of February. b. Do you think the promotion should occur? Complete this question by entering your answers in the tabs below. Required A Require B Do you think the promotion should occur?
Mrs. Tannenbaum is going to sell Christmas tree lights for $40 a box. The lights cost Mrs. Tannenbaum $10 a box and any unsold lights can be returned for a full refund. She is planning to rent a booth at the upcoming Happy Holidays Convention, which offers three options: 1. paying a fixed fee of $3,000, or 2. paying a $1,000 fee plus 10% of revenues made at the convention, or 3. paying 25% of revenues made at the convention. Which of the following statements is FALSE? Her decision will determine the risk she faces. Contribution margin will vary depending upon the option chosen. One of the options will allow Mrs. Tannebaum to break even, even if she doesn't sell any lights. Operating income will be the greatest for Option 3.
The West Indies School Book Shop sells T Shirts emblazoned with the school's name and logo. The shirts cost $2,000 each and management estimates that 900 T Shirts will be sold during each month of the year. The annual holding cost for a unit of that inventory is estimated to be 1.5% of the purchase price. It costs the Book Shop $500 to place a single order. The maximum sale for the Book Shop for any one week is 300 shirts and minimum sales 150 shirts. The supplier takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. i) Determine the highest number of shirts that should be purchased by the Gift Shop in order to minimize stock administration cost. ii) What is the total stock administration costs? iii)Using the EOQ policy, determine the re-order level, minimum inventory level and maximum inventory level for the T Shirts.
The West Indies School Book Shop sells T Shirts emblazoned with the school’s name and logo. The shirts cost $2,000 each and management estimates that 900 T Shirts will be sold during each month of the year. The annual holding cost for a unit of that inventory is estimated to be 1.5% of the purchase price. It costs the Book Shop $500 to place a single order. The maximum sale for the Book Shop for any one week is 300 shirts and minimum sales 150 shirts. The supplier takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. Determine the highest number of shirts that should be purchased by the Gift Shop in order to minimize stock administration cost. What is the total stock administration costs? Using the EOQ policy, determine the re-order level, minimum inventory level and maximum inventory level for the T Shirts.
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $749,280 Variable expenses 561,960 Contribution margin 187,320 Fixed expenses 133,000 Operating income $ 54,320 How many cakes will Julianna Abdallah have to sell if she wants to earn $171,654 in operating income each month? cakes LINK TO TEXT LINK TO VIDEO Assuming a 30% tax rate, how many cakes will Julianna Abdallah have to sell if she wants to earn $74,284 in net income each month? (Round answer to 0 decimal places, e.g. 5,275.) cakes
Wyoming Waters Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Wyoming Waters has the following ticket prices and variable costs for the year: Individual Family Sale price per ticket $35 $105 Variable cost per ticket 25 100 Wyoming Waters expects to sell one individual ticket for every three family tickets. Wyoming Waters' total fixed costs are $25,000. Requirement 2. Calculate the total number of tickets Wyoming Waters must sell to break even. Start by selecting the formula and entering the amounts to calculate the total number of tickets Wyoming Waters must sell to break even. (Abbreviations used: Weighted avg. CM = weighted-average contribution margin. Complete all input fields. For items with a zero value, enter "0".) (Fixed costs + Target profit) ÷ Weighted-avg. CM per unit = Required sales in units ( + ) ÷ =…
The Cycle Shoppe has decided to offer credit to its customers during the spring selling season. Sales are expected to be 330 bicycles. The average cost to the shop of a bicycle is $300. The owner knows that only 93 percent of the customers will be able to make their payments. To identify the remaining 7 percent, she is considering subscribing to a credit agency. The initial charge for this service is $540, with an additional charge of $6 per individual report. What is the amount of the net savings from subscribing to the credit agency? A. $3,790 B. $3,920 C. $4,080 D. $4,410 E. $4,950
Starcups Coffee Company is launching a new sustainability initiative that would reward customers for purchasing a reusable cup. During the cup promotion, customers would pay an extra $1.00 for the reusable cup and would receive a 20% discount each time they return with the cup to buy a cup of coffee. Each week Starcups serves 46,000 customers who purchase an average of 3.00 cups of coffee per week (138,000 cups total). Starcups's contribution margin income statement for a typical week is shown below: Units Per Unit 138,000 138,000 Total $5.20 $717,600 289,800 $3.10 $427,800 Sales Revenue Variable Cost 2.10 Contribution Margin 138,000 Fixed Costs 106,000 Net Operating Income $321,800 Assume the new cup promotion is expected to impact sales volume, revenue, fixed, and variable costs as follows: • Starcups estimates that 30% of its current customers (13,800) will participate in the promotion. The remainder of its existing customer base (32,200) will continue to buy an average of 3.00 cups…

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