Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 7.14SE
To determine
To compute: The number of boxes required to sell to breakeven for both plain and flavored popcorns.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
If answered within 30mins,it would be great!!!
Boom!
is a specialty popcorn store. It offers two varieties of popcorn: plain and flavored. The flavors range from Caramel Popcorn to Dark Chocolate Drizzled Popcorn to White Cheddar Popcorn. The plain popcorn sells for
$1.70
per box and costs
$0.40
per box to make. The flavored popcorn sells for
$3.75
per box and costs
$2.20
per box to make.
Boom!
has fixed costs per month of
$3,840.
Boom!
sells 1 box of plain popcorn for every 4 boxes of flavored popcorn. How many boxes of plain popcorn and how many boxes of flavored popcorn must
Boom!
sell each month to break even?
Enrichment Activity 4: I'll show you my figure & give me your solution!
Direction: Read and understand the problem below calculate the cost of goods sold
and gross profit. Write your answer on a separate sheet of paper. (10 minutes)
Problem A
Shoe keeper had bought 1.00 footballs for Ph.30.00 each. One football player comes
and bought 10 footballs for 50.00 each. Calculate the cost of goods
sold. Show your solution.
Problem B
XYZ Company has Beginning Inventory Php. 100,000, New Purchases amounting
to Php. 450,000 and Ending Inventory is Php. 35,000. Find the cost of
goods sold for XYZ Company.
Problem C
I sell T-shirts, I bought them from the manufacturer for 500.00 for each tshirt. I sold
them at 800.00 each. In the month of February, I decided to buy 10 pieces of t -shirts
and only seven t-shirts were sold.
Compute the cost of goods sold and gross profit. Show your solution.
Professor Smith's AIS class sold hotdogs at the festival. They paid a $40 booth fee, as well as $20 for meat, $10 for buns and $10 for condiments. They were given small plates for
free. They also paid $20 for decorations. The class was able to make a total of 40 holdogs and sold them for $5.00 each. What is the price of the hotdogs?
$0.75
$1.50
$2.50
$5.00
$30.00
$40.00
$100.00
All of the above
None of the above
Chapter 7 Solutions
Managerial Accounting (5th Edition)
Ch. 7 - (Learning Objective 1) The contribution margin is...Ch. 7 - (Learning Objective 1) The contribution margin...Ch. 7 - (Learning Objective 2) The formula to find the...Ch. 7 - Prob. 4QCCh. 7 - Prob. 5QCCh. 7 - Prob. 6QCCh. 7 - (Learning Objective 4) Which of the following is...Ch. 7 - Prob. 8QCCh. 7 - Prob. 9QCCh. 7 - Prob. 10QC
Ch. 7 - Compute unit contribution margin and contribution...Ch. 7 - Prob. 7.2SECh. 7 - Prob. 7.3SECh. 7 - Find target profit volume (Learning Objective 2)...Ch. 7 - Prob. 7.5SECh. 7 - Prob. 7.6SECh. 7 - Prob. 7.7SECh. 7 - Prob. 7.8SECh. 7 - Compute margin of safety (Learning Objective 5)...Ch. 7 - Compute and use operating leverage factor...Ch. 7 - Calculate breakeven and target profit sales...Ch. 7 - Prob. 7.12SECh. 7 - Prob. 7.13SECh. 7 - Prob. 7.14SECh. 7 - Compute margin of safety (Learning Objective 5)...Ch. 7 - Compute and use operating leverage factor...Ch. 7 - Prob. 7.17SECh. 7 - Prob. 7.18SECh. 7 - Prepare contribution margin income statements...Ch. 7 - Work backward to find missing information...Ch. 7 - Find breakeven and target profit volume (Learning...Ch. 7 - Prob. 7.22AECh. 7 - Prob. 7.23AECh. 7 - Prob. 7.24AECh. 7 - Prob. 7.25AECh. 7 - Prob. 7.26AECh. 7 - Sustainability and CVP concepts (Learning...Ch. 7 - Prob. 7.28AECh. 7 - Calculate contribution margin and breakeven...Ch. 7 - Prob. 7.30AECh. 7 - Extension of E7-30A: Multiproduct firm (Learning...Ch. 7 - Prob. 7.32AECh. 7 - Breakeven and an advertising decision at a...Ch. 7 - Prob. 7.34AECh. 7 - Prob. 7.35AECh. 7 - Prob. 7.36AECh. 7 - Comprehensive CVP analysis (Learning Objectives 1,...Ch. 7 - Comprehensive CVP analysis (Learning Objectives 1,...Ch. 7 - Prob. 7.39AECh. 7 - Prob. 7.40BECh. 7 - Work backward to find missing information...Ch. 7 - Find breakeven and target profit volume (Learning...Ch. 7 - Prob. 7.43BECh. 7 - Prob. 7.44BECh. 7 - Prob. 7.45BECh. 7 - Prob. 7.46BECh. 7 - Continuation of E7-46B: Changing business...Ch. 7 - Sustainability and CVP (Learning Objective 3)...Ch. 7 - Prob. 7.49BECh. 7 - Prob. 7.50BECh. 7 - Prob. 7.51BECh. 7 - Prob. 7.52BECh. 7 - Find breakeven for a multiproduct firm (Learning...Ch. 7 - Breakeven and an advertising decision at a...Ch. 7 - Compute margin of safety and operating leverage...Ch. 7 - Use operating leverage factor to find fixed costs...Ch. 7 - Prob. 7.57BECh. 7 - Comprehensive CVP analysis (Learning Objectives 1,...Ch. 7 - Prob. 7.59BECh. 7 - Comprehensive CVP analysis (Learning Objectives 1,...Ch. 7 - Find missing data in CVP relationships (Learning...Ch. 7 - Prob. 7.62APCh. 7 - Prob. 7.63APCh. 7 - Prob. 7.64APCh. 7 - Prob. 7.65APCh. 7 - Prob. 7.66APCh. 7 - Find missing data in CVP relationships (Learning...Ch. 7 - Prob. 7.68BPCh. 7 - Comprehensive CVP problem (Learning Objectives 1,...Ch. 7 - Prob. 7.70BPCh. 7 - Prob. 7.71BPCh. 7 - CVP analysis at a multiproduct firm (Learning...Ch. 7 - Prob. 7.73SCCh. 7 - Discussion Questions 1. Define breakeven point....Ch. 7 - Prob. 7.75ACTCh. 7 - Prob. 7.76ACTCh. 7 - Prob. 7.77ACT
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- A school purchasing manager is seeking to buy tablets from either Entity A or Entity B and will pay shipping costs. The purchase price is $500 each. Entity A purchases the tablets from the manufacturer, Banana Industries (for $400). Entity A has the tablets shipped to its distribution center in Denver, and then ships them to schools when a sale is made. Entity A at times offers discounts to schools in accordance with its marketing strategy. On the other hand, Entity B sells tablets from a variety of manufacturers including Banana Industries. When a sale is made, Entity B remits the proceeds to the manufacturer, and retains a 10% commission (here $50). Entity B has no discretion as to the sales price. The manufacturer then ship the equipment to the customer. For each arrangement, indicate how much revenue and gross profit should be recognized. Provide support for your answer from the ASC and cite the applicable provisions. You should cite like this: ASC 606-10-35-3(e) so we can find…arrow_forwardmart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 47,000 $8.60 6,600 $17.10 February 61,000 $8.60 7,700 $17.10 March 86,000 $8.60 13,500 $17.10 April 105,000 $8.60 17,000 $17.10 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,320 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 20…arrow_forwardSmart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 47,000 $8.55 6,700 $16.80 February 61,000 $8.55 7,600 $16.80 March 81,000 $8.55 13,500 $16.80 April 100,000 $8.55 16,000 $16.80 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,340 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 20…arrow_forward
- You run a business out of your dorm room selling ACC2020 textbooks in both paper and digital versions. The paper version costs you $400 and you can sell it for $600. The digital version costs you $100 and you can sell it for $200. Last semester you sold 10 paper versions and 100 digital versions for total sales of $26,000. You expect that sales mix will continue this semester. - If your semester fixed costs are $6,000 for a publisher's license, what dollar amount of sales will you need to breakeven? - How many paper and digital books will you have to sell to break even? - How much operating income did you have last semester?arrow_forwardConsider the following hypothetical sales scenario. A large community college buys and takes delivery of 50 iMac computers from a local Apple store. The invoiced price is $2,800 per unit and includes hardware, software essential to the functionality of the hardware, third-party software including Microsoft Office for Mac and Adobe Creative Suite, and two years of tech service and support. Apple uses vendor-specific objective evidence to determine unit prices of $2,500 and $300 for hardware and the essential software, respectively. The third-party software typically retails for $500 (but Apple purchases it at a 50% discount) and equivalent service and support contracts are $100 per year. The customer (the community college) can opt to purchase subsequent essential software and OS upgrades. Indicate how Apple should record gross revenue for the transaction at the time the customer takes delivery of the computers. Your response should include specific dollar amounts.arrow_forwardSmart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 50,000 $8.25 7,000 $16.00 February 58,000 $8.25 7,500 $16.00 March 80,000 $8.25 14,000 $16.00 April 100,000 $8.25 18,000 $16.00 Required: 1. Construct a sales budget for Smart Strike for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent. Smart Strike CompanySales BudgetFor the First Quarter of Next Year January February March Quarter Practice ball: Units ____ ____ _____…arrow_forward
- Smart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 48,000 $8.85 6,400 $17.20 February 58,000 $8.85 7,500 $17.20 March 86,000 $8.85 13,000 $17.20 April 105,000 $8.85 17,000 $17.20 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,600 practice soccer balls and 1,280 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. Smart Strike's policy is that 20…arrow_forwardBusiness: Mixing Candy A candy store sells boxes of candycontaining caramels and cremes. Each box sells for $12.50and holds 30 pieces of candy (all pieces are the same size). Ifthe caramels cost $0.25 to produce and the cremes cost $0.45to produce, how many of each should be in a box to yield aprofit of $3?arrow_forwardGRAPHICAL METHOD: A school is preparing a trip for 400 students. The company who is providing the transportation has 10 buses of 50 seats each and 8 buses of 40 seats, but only has 9 drivers available. The rental cost for a large bus is $800 and $600 for the small bus. Calculate how many buses of each type should be used for the trip for the least possible cost. Attach the PDF or JPEG file of the solution made. *arrow_forward
- Your child wants to start a lemonade stand. The ingredients would cost: S3 for 3 pounds of sugar (half a pound per gallon) $9 for 3 dozen lemons (6 lemons per gallon) $4 for a dozen oranges (2 oranges per gallon) S3 for 100-count of plastic cups 6 gallons of lemonade will be sold (use 100 cups sold @ S0.50 each) 1. What is the ROI (write as a percentage)? 2. Is it a good idea (Yes or No, based on ROI)?arrow_forwardQ1. TınazFormers sells a patented product called the CoronaKiller. This device, which sells for $70, is very popular. The CoronaKiller is sold through a distributor who sells to retail stores and to the public through TV Shows. The distributor pays TınazFormers $30 for each CoronaKiller. TınazFormers also sells them through 15-minute television shows and on the Healthy TV for $70 plus $15 for shipping and handling. Although each TV Show increases the public awareness of the product, thereby stimulating sales in the retail stores, TV Show sales also preempt retail sales. The distributor sells sufficiently large numbers of units that, for every 10 CoronaKillers sold via the TV Show, two units will not be sold in a retail outlet. For each unit sold on the TV Show, TınazFormers TınazFormers pays $5 to the shipping company for mailing and $2 to the phone-answering company for providing the toll-free number and processing the order. TınazFormers purchases CoronaKillers from the manufacturer,…arrow_forwardWyoming 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 ( + ) ÷ =…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY