FUNDAMENTALS OF COST ACCOUNTING
6th Edition
ISBN: 9781264192236
Author: LANEN, ANDERSO
Publisher: McGraw Hil
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Question
Chapter 3, Problem 47E
a.
To determine
Calculate the anticipated level of profits for the expected sales volumes.
b.
To determine
Compute the break-even volume assuming that the product mix would be 40 per cent chicken and 60 per cent fish at the break-even point.
c.
To determine
Compute the break-even point, when product sales mix was to change to four chicken tacos for each fish taco.
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Mission Foods produces two flavors of tacos-chicken and fish - with the following characteristics.
Chicken Fish
Selling price per taco $ 3.30 $ 5.40
Variable cost per taco 1.65 2.70
Expected sales tacos 207,000 291,000
The total fixed costs for the company are $114,000.
Required:
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix would be 36 percent chicken and 64 percent fish at the break-even point, compute the break-even volume using the weighted-average contribution margin.
c. If the product sales mix were to change to four chicken tacos for each fish taco, what would be the new break-even volume?
Complete this question by entering your answers in the tabs below.
Required A
a. What is the anticipated level of profits for the expected sales volumes?
b.…
Mission foods produces two flavors of tacos, chicken and fish, with the following characteristics.
The total fixed costs for the company are $117,000.
A. What is the anticipated level of profits for the expected sales volumes?
B. Assuming that the product mix would be 40 percent chicken and 60 percent fish at the break-even point, compute the break even volume.
C. If the product sales mix were to change to four chicken tacos for each fish taco, what would be the new break-even volume?
Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two
models are as follows:
Selling price per bed
Variable cost per bed
Expected sales (beds)
The total fixed costs for the company are $401,940.
Basic
$ 23.00
$ 16.00
60,000
Required:
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume.
c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume?
Required A
Complete this question by entering your answers in the tabs below.
Custom
$ 58.00
$ 37.00
40,000
Required B
Profit
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What is the anticipated level of profits for the expected sales volumes?
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Chapter 3 Solutions
FUNDAMENTALS OF COST ACCOUNTING
Ch. 3 - Write out the profit equation and describe each...Ch. 3 - What are the components of total costs in the...Ch. 3 - How does the total contribution margin differ from...Ch. 3 - Compare cost-volume-profit (CVP) analysis with...Ch. 3 - Fixed costs are often defined as fixed over the...Ch. 3 - Prob. 6RQCh. 3 - What is the margin of safety? Why is this...Ch. 3 - Prob. 8RQCh. 3 - Write out the equation for the target volume (in...Ch. 3 - How do income taxes affect the break-even...
Ch. 3 - Why is it common to assume a fixed sales mix...Ch. 3 - What are some important assumptions commonly made...Ch. 3 - Prob. 13CADQCh. 3 - Prob. 14CADQCh. 3 - The typical cost-volume-profit graph assumes that...Ch. 3 - The assumptions of CVP analysis are so simplistic...Ch. 3 - Prob. 17CADQCh. 3 - Consider a class in a business school where volume...Ch. 3 - Prob. 19CADQCh. 3 - Prob. 20CADQCh. 3 - Consider the Business Application,...Ch. 3 - Consider the Business Application,...Ch. 3 - Prob. 23CADQCh. 3 - Profit Equation Components Identify each of the...Ch. 3 - Profit Equation Components Identify the letter of...Ch. 3 - Basic Decision Analysis Using CVP Anus Amusement...Ch. 3 - Basic CVP Analysis The manager of Dukeys Shoe...Ch. 3 - CVP AnalysisEthical Issues Mark Ting desperately...Ch. 3 - Basic Decision Analysis Using CVP Derby Phones is...Ch. 3 - Prob. 30ECh. 3 - Basic Decision Analysis Using CVP Warner Clothing...Ch. 3 - Basic Decision Analysis Using CVP Refer to the...Ch. 3 - Prob. 33ECh. 3 - Prob. 34ECh. 3 - Analysis of Cost Structure Spring Companys cost...Ch. 3 - CVP and Margin of Safety Bristol Car Service...Ch. 3 - CVP and Margin of Safety Caseys Cases sells cell...Ch. 3 - Prob. 38ECh. 3 - Prob. 39ECh. 3 - Refer to the data for Derby Phones in Exercise...Ch. 3 - Refer to the data for Warner Clothing in Exercise...Ch. 3 - CVP with Income Taxes Hunter Sons sells a single...Ch. 3 - CVP with Income Taxes Hammerhead Charters runs...Ch. 3 - Prob. 44ECh. 3 - Prob. 45ECh. 3 - Prob. 46ECh. 3 - Prob. 47ECh. 3 - CVP Analysis and Price Changes Argentina Partners...Ch. 3 - Prob. 49PCh. 3 - CVP AnalysisMissing Data Breed Products has...Ch. 3 - Prob. 51PCh. 3 - Prob. 52PCh. 3 - CVP AnalysisSensitivity Analysis (spreadsheet...Ch. 3 - Prob. 54PCh. 3 - Prob. 55PCh. 3 - Extensions of the CVP ModelSemifixed (Step) Costs...Ch. 3 - Prob. 57PCh. 3 - Extensions of the CVP ModelTaxes Odd Wallow Drinks...Ch. 3 - Prob. 59PCh. 3 - Prob. 60PCh. 3 - Extensions of the CVP ModelTaxes Toys 4 Us sells...Ch. 3 - Extensions of the CVP AnalysisTaxes Eagle Company...Ch. 3 - Extensions of the CVP ModelMultiple Products...Ch. 3 - Extensions of the CVP ModelMultiple Products...Ch. 3 - Prob. 65PCh. 3 - Prob. 66PCh. 3 - Prob. 67PCh. 3 - Prob. 68PCh. 3 - Extensions of the CVP ModelMultiple Products and...Ch. 3 - Extensions of the CVP ModelTaxes With Graduated...Ch. 3 - Prob. 71PCh. 3 - Financial Modeling Three entrepreneurs were...
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