FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- QUESTION 2 A restaurant has three main products: drinks, meals and desserts. Fixed costs are $397,000. Other financial information is as follows: Item drinks meals desserts Average Purchase (in $) 10 25 10 Average Margin Total Sales Dollars (in %) 40 50 10 60% 20% 70% What are total sales (in dollars) needed to make a profit of $200,000, assuming that the sales mix remains constant? How many drinks would they need to sell in order to make a profit of $200,000, assuming that the sales mix remains constant.arrow_forwardProblem 21 same les 361 Use CVP and compute the sales revenue necessary to achieve an IBIT of $162.000 for a multi-product restaurant with total fixed costs of $150,000 from the information below: Sales Contribution Mix Margin 60% 40% Food 40% 70% Beveragearrow_forwardKnowledge Check 02 Cartier Corporation currently sells its products for $50 per unit. The company's variable costs are $20 per unit. Fixed expenses amount to a total of $5,000 per month. What is the company's variable cost ratio? 40% 60% 100% 20%arrow_forward
- esc QUESTION 12 Indiana Bones, Inc., produces and sells 2,000 units of a single product, a deluxe dog house: Selling price per unit Variable cost per unit Annual fixed cost What is the company's breakeven point in sales dollars? Round your answer to the nearest whole dollar. Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro # $ 4323 4 2 ! 1 Q W E R do L % 5 T < C 6 & Y 7 I * 8 U $5,000 $1,000 $500,000 9 J -arrow_forwardWhat is Dairy Day's contribution margin ratio? On accounting questionarrow_forwardProblem 20 Use CVP and compute the sales revenue necessary to achieve an IBIT of $162,000 for a multi-product restaurant from the information below. Food Beverage Total Sales $240,000 000'091 192,000 VC %00 CM 0000 112,000 208,000 52% FC 000ʻ96 IBIT 000'sarrow_forward
- 4 Homework Saved Hel Munoz Company makes a product that sells for $31 per unit. The company pays $20 per unit for the variable costs of the product and incurs annual fixed costs of $107,800. Munoz expects to sell 21,700 units of product. Required Determine Munoz's margin of safety expressed as a percentage. (Round your percentage answers to 2 decimal places (i.e., 0.2345 should be entered as 23.45).) Margin of safety % ...arrow_forwardPROBLEM 7 Tito Company sells several products. Information of average revenue and costs are as follows: Selling price per unitPhp20.00 Variable costs per unit: Direct materialsPhp4.00 Direct manufacturing labor Php1.60 Manufacturing overhead Php0.40 Selling costsPhp2.00 Annual fixed costs Php96,000 26. Calculate the contribution margin per unit. 27. Calculate the number of units Tito's must sell each year to break even. 28. Determine the breakeven point in peso. 29. Calculate the number of units Tito's must sell to yield a profit of Php144,000. PROBLEMarrow_forwardCh. 6 Break-Even Please solve and explain the following problem "Larson's sells it's products for $12 per unit. The contribution margin per unit is $8.00 and fixed costs are $75,000. How many units does Larson's have to sell to break-even?"arrow_forward
- QUESTION 1 Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard cost of one chair is as follows: GHe Materials 15 Direct labour 8 Variable overheads 7 Required: 1.Calculate for one month 2. The variable cost of one chair b. the breaker en point 3. The profit if 200 chairs are sold 4. The number of chairs sold to give profit of GHe4,000arrow_forwardQUESTION 2 Luna Sea Sushi, Inc. has total costs of $120,000 when it sells 40,000 units. If total fixed costs are $40,000, what is variable cost per unit?arrow_forwardQUESTION 32 Jerry Seavolt is requesting your assistance in determining a cost equation for foreasting his expenses for his Maple Valley Restaurant. He provides costs at two extremes as follows: 1. Identify each cost as fixed, variable or mixed 2. What are the estimated monthly fixed costs (including the fixed portion of mixed costs)? 3. What are the estimated variable costs per cover sold? Monthly Covers Monthly Covers 4,000 8,000 Cost of food sold $12,000 $24,000 Salaries $10,000 $10,000 Wages $10,000 $20,000 Employee Benefits $6,000 $8,000 Supplies $3,000 $6,000 Utilities $2,000 $3,000 Rent $2,000 $4,000 Other operating costs $4,000 $5,000 Insurance $1,000 $1,000 Depreciation $1,200 $1,200 Property taxes $1,500 $1,500arrow_forward
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