Question 12 Surrey Company sells soup packets to distributors throughout the lower mainland at a price of $24.99 per soup packet. Their annual expenditures include S48,000 in rent and utilities and $102,000 in employee salaries. On top of that, they spend $11.19 on the ingredients tets must Suurrey sell each vear in order to break even?
Q: #5. The following information was developed for Beta Company for the year ended December 31, 2018.…
A: Contribution Margin: It is the revenue which remains after deducting variable costs of products.…
Q: Question 9 (3 points) Jaspreet processes and bottles tomato sauce in her home-based business. Her…
A: Information Provided: Fixed costs = $1550 Variable costs = $2.40 per year Selling price = $7.74…
Q: The Big Star company sells its products for $100,000; that it pays $30,000 for materials purchased…
A:
Q: Question 2. Case 6 A company has fixed costs of $90,000. Its contribution margin ratio is 30% and…
A: The contribution margin ratio (CMR) is determined by dividing the difference between sales and…
Q: Question#2 Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that the…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: 3. Assume that Cane expects to produce and sell 83,000 Alphas during the current year. One of Cane's…
A: In order to take decision regarding whether the product is to be sold to new customer , we need to…
Q: Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: q7 Lightening Bulk Company is a moving company specializing in transporting large items…
A: The quantity of funds generated by an investment after all revenue items have been collected and…
Q: Carolina Fastener, Inc., makes a patented marine bulkhead latch that wholesales for $6.00. Each…
A: Selling Price = $6 Variable Cost = 3.5 Fixed Operating Cost = $50,000 Interest = $13,000 Preference…
Q: Last year Doreen's Dairy earned a total revenue of $42 thousand from selling 7 thousand pounds of…
A: Economic profit is computed by deducting explicit as well as implicit costs from the revenue.
Q: Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. This…
A: In bookkeeping, the break-even point recipe is determined by separating the absolute fixed expenses…
Q: 3. The Swift Meal has two restaurants that are open 24 hours a day. Fixed costs for the two…
A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…
Q: QUESTION 12 XYZ Shirts is a small firm manufactures imprinted shirts for special occasions. Amachine…
A: Break even point amount = Fixed cost/contribution margin ratio Here fixed cost means usually we take…
Q: PART A Tulip Enterprise bottles and distributes B-Lite, a diet soft drink. The beverage is sold for…
A: Contribution margin = Sales - Variable cost Net operating income = Contribution margin - Total fixed…
Q: Question 2 Gruden Company produces golf discs which is normally sells to retailers for $7 each. The…
A: Revenue on special order: 5000 x 4.80 = $24,000 Material cost: 5000 x 10000 / 20000 = $2,500 Labour…
Q: Problem 6. Highlands Inc., produces and sells camping equipment. One of the company's products, a…
A: Break-Even Sales:-It is a sales point where an entity earns no profit any loss from the sales of…
Q: sakasa Corporation produces baseball bats for kids that it sells for $32 each. At capacity, the…
A: CVP Analysis
Q: Problem 2 Friendly Company produces a single product. Recently, the company received a special order…
A: Contribution margin: It refers to the total earnings available to the firm to pay fixed expenses and…
Q: H4. Resolute Health buys $600,000 of a particular item (at gross prices) from its major supplier,…
A: Credit cost refers to the value of expenses that are charged to a borrower while signing the…
Q: 3. Just In Time MY yogurt company sells 1 bottle of its brand yogurt at a price of IDR 10,000. For 1…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: 11. Jon Snow Inc. is a medium-sized manufacturer of lamps. During the year a new line called…
A: Break even point means a point where firm is neither earning profit nor incurring any loss.…
Q: Q1: Query Company sells pillows for $75.00 each. The manufacturing cost, all variable, is $8 per…
A: The profitability of the company can be arrived from the income statement prepared by the management…
Q: 18. Carter Manufacturing Company makes a variety of consumer products. For the year just ended (and…
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…
Q: Practice 3: Bob Company, a sole proprietorship, sells only one product. The regular price is $160.…
A: Contribution Margin is the ability of the company to cover its variable cost. It is the balance…
Q: Question 3 Study the information given below and answer: 3.5 Based on the expected sales volume of 2…
A: Selling price is the one on which the product is sold after including all the cost incurred by the…
Q: PROBLEM 8. The Color Company manufactures and sells two products. The selling prices and variable…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: Practice 2: Pet Park International sells cat food and dog food. Its monthly fixed costs average…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Raveen Products sells camping equipment. One of the company’s products, a camp lantern, sells for…
A: Cost-volume-profit (CVP) analysis helps to determine the impact of cost and production volume on the…
Q: Raveen Products sells camping equipment. One of the company’s products, a camp lantern, sells for…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: 11. Jon Snow Inc. is a medium-sized manufacturer of lamps. During the year a new line called…
A: Solution: Total sales for the year = BEP Sales + (Profit / CM ratio)
Q: Chapter 7 Problem Solution 1 Please select the correct answer and solve and explain. "Goodstone Tire…
A: A fixed Overhead cost of $12 per unit will not be considered for the decision-making purpose as it…
Q: It costs Homer's Manufacturing $0.65 to produce baseballs and Homer sells them for $4.00 a piece.…
A: The gross profit is calculated as difference between sales revenue and cost of goods sold.
Q: 18. Carter Manufacturing Company makes a variety of consumer products. For the year just ended (and…
A: Consumer products refer to final products which are held for consumption by the consumers. No…
Q: 17. Jolo Corporation wants to revise the sales commission payment scheme. Currently, the 4 sales…
A: Lets understand the basics. For calculating indifference point between two option we need to use…
Q: Question 7 (Breakeven Analysis). ou decided to sell Only coffee using Nespresso machine during…
A: Solution.. Option (1) Fixed cost = SAR 3,000 Selling price per unit = SAR 10 Variable cost per…
Q: estion 2: Zeroll Ice Cream company produces and sells premium ice cream cones in Coles supermarkets.…
A: Given: Selling Price = $5.00 Variable Cost = $1.35 + $0.45 + $0.20 = $2.00 Fixed Cost = $3,000…
Q: Assume that Ocean King Products sells three varieties of canned seafood with the following prices…
A: Break-even Sales revenue = (Fixed costs / Weighted average CM) * Weighted average SP Where,…
Q: QUESTION 44 Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000…
A: Unavoidable allocated overhead are those overheads which will continue to be incur even if the…
Q: 62. The following data relate to Homer Company which sells a single product: Unit selling price P…
A: The required level of sales volume can be determined with the help fixed cost and contribution…
Q: 7.9. The 100 room hotel has three types of rooms with the rates and sales shown below. Determine the…
A: The question is based on the concept of Business accounting.
Q: Q2. Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of…
A: The entity needs to purchase the unit in their order as per EOQ because EOQ shows the quantity per…
Step by step
Solved in 2 steps
- Question 1 LUMU has demand for 1400 water pumps each year. The cost of a water pump to LUMU is $400. Inventory carrying cost is estimated to be 20% of the unit cost and the ordering cost is $25 per order. If the owner orders in quantities of 300 or more, he can get a 5% discount on the pumps, Should LUMU accepts the quantity discount?bed Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $127.00 per service 89.00 per service 119,548 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? ook b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $32,604 after taxes? a Required sales in a year to break even int rences b. Required sales in a year to earn an annual operating profit of $32,604 after taxes: cleaning services cleaning servicesFigure 1 Mrs. Brown's Bagel Company manufactures specialty bagels. The company buys flour in 50-pound bags that cost GHS25 each. The company uses 10,000 bags per year, and usage occurs evenly throughout the year. The average cost to carry a 50-pound bag in inventory per year is GHS4, and the cost to place an order is GHS10. The company works 250 days per year. 20. Refer to Figure 1. If Brown's lead time is four working days, the average rate of usage is 40 bags per day, and the company carries a safety stock of 20 bags, the reorder point would be a. 180 bags. b. 140 bags. c. 160 bags. d. 100 bags.
- 3. The Swift Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $456,000 per year. Service varies from a cup of coffee to full meals. The average sales check per customer is $9.50. The average cost of food and other variable costs for each customer is $3.80. The income tax rate is 30%. Target net income is $159,600. Compute the revenues needed to earn the target net income. b. How many customers are needed to break even? To earn net income of S159,600? c. Compute net income if the number of customers is 145,000.Question 5 Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company’s monthly fixed expenses are $200,000. Required: a) What is the company’s break-even point in units? b) What is the company’s margin of safety in dollars, assume sales is expected to be $800,000? c) How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000? d) Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. e) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months? SHOW YOUR WORKINGProblem 1 Right Fit Jeans Co. sells blue jeans wholesale to major retailers across the country. Each pair of jeans has a selling price of $40 with $30 in variable costs. The company has fixed manufacturing costs of $1,050,000 and fixed marketing costs of $150,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 20%. For each question below, show your computations. Ignoring income tax, how many jeans must Right Fit sell in order to break even? How many jeans must the company sell in order to reach A target operating income of $300,000 ignoring taxes? A net income of $300,000 taking taxes into consideration? How many jeans would Right Fit have to sell to earn the net income in requirement 2b if (Consider each requirement independently.) The contribution margin per unit increases by 20%. The selling price is increased to $45. The company outsources manufacturing to an overseas company, increasing variable costs per unit by…
- Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price $ 128.00 per service Variable costs 90.00 per service Fixed costs 124,982 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: How many cleaning services must Cruse Cleaning sell in a year to break even? How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $34,086 after taxes?Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?QUESTION 20 A company sells mattresses for $390 each. To produce a batch of æ mattresses, there is a cost of $198 per mattress and a fixed or setup cost of $10,700 for the entire batch. Determine a function that gives the profit in terms of the number of mattresses produced. What will the company's profit be, in dollars, if they produce and sell 190 mattresses? Include a negative sign in your answer if the profit is negative. Provide your answer below: