Sam’s Skate Shop specializes in SUPERIOR SKATES for ice hockey.  Their only product is hockey skates, which they sell at $240/pair.  They cost $130/pair.  The shop’s fixed costs are $8,000 a month. How many pairs of skates must Sam sell each month to break even?  _______________ What is his break even sales volume?  $_________________________ If he wants to make operating income of $8,000 a month, give his quantity  ___________ and revenue $_____________ Sam is considering adding an advertising campaign that costs $1,000 a month.  He expects this will increase his sales by 100 pairs of skates a month.  What is his new break even volume?   _______________________ Should Sam do this advertising campaign?  Yes / No / Break even (circle one) Why?

Snow Now sells snowboards. Snow Now knows that the most people will pay for the snowboards is $129.99. Snow Now is convinced that it needs a 45% markup based on cost. The most that Snow Now can pay to its supplier for the snowboards is:   A. $88.65   B. $98.65   C. $96.65   D. None of these   E. $87.65

Avocado Company sells guitars to Mexican restaurants. The guitars sell for $600, and the fixed monthly operating costs are as follows: Rent and utilities $4800 Wages and benefits to employees 2300 Other expenses 485 Avocado understand that for every dollar of sales, $0.65 went to cover fixed costs, and anything above that point was profit. What is the amount of revenue that Avocado should earn each month to break even? (Round your answer to the nearest dollar.) O $4285 O $4769 O $5515 O $10,243

José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $245 each. José believes he can produce a birdhouse for a total cost of $200 per unit, and he plans a 25% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price E per unit Required A Required B >

Old MacDonald produces hay. He has a single employee, Jack. If Jack works for x hours he can produce x bales of hay. Each bale of hay sells for $1. The cost to Jack of working x hours is c(x) = x2/10. (a) What is the efficient number of bales of hay for Jack to cut? _____________ (b) If the most that Jack could earn elsewhere is zero, how much would MacDonald have to pay him to get him to work the efficient amount? ______________ (c) What is MacDonald’s net profit? _______________ (d) Suppose that Jack would receive $1 for passing out leaflets, an activity that involves no effort whatsoever. How much would he have to receive from MacDonald for producing the efficient number of bales of hay? ____________ (e) Suppose now that the opportunity for passing out leaflets is no longer available, but that MacDonald decides to rent his hayfield out to Jack for a flat fee. How much would he rent it for? ___________

Teddy Dog Food Incorporated (TDFI) currently makes and sells one type and size of dog food, a 16 ounce bag of all-natural freeze-dried chicken. TDFI sells each bag of food for $10. The Variable Expense per bag of food is $6. Fixed Expenses per month total $300.   If TDFI sells three extra bags of dog food, by how much does TDFI's overall profit increase? Omit the dollar sign in your answer.

Mark owns a company that sells sneakers of high quality. For each sneaker, the leather cost is SR 110 and the production cost is SR 70. The monthly cost for running the company is SR 32000 and the monthly cost for running the factory is SR 56000. If Mark predicted that he would only sell 550 sneakers, what selling price would make Mark break-even by selling this number of sneakers?

Vaibh

Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below:  Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs:       Direct materials $8 $8 000       Direct labour 2 2 000      Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000     The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special order. The university will be hosting a state-wide soccer event and is willing to pay Rajan’s Manufacturing $17 per shirt to make 200 custom vests for…

Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,060 each. The average cost of a television from the manufacturer is $1,330.   Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows:     Costs      Cost Formula   Selling:            Advertising $ 1,090  per month      Delivery of televisions $ 50  per television sold      Sales salaries and commissions $ 3,040  per month, plus 5% of sales      Utilities $ 404  per month      Depreciation of sales facilities $ 3,160  per month   Administrative:            Executive salaries $ 11,500  per month      Depreciation of office equipment $ 805  per month      Clerical $ 1,860  per month, plus $49 per television sold      Insurance $ 720  per month     During April, the company sold and delivered 219…