16-32 Common costs. Jeana's Cupcake Shop and Jody's Cakes each operate a bakery close to each other ina small town in Florida. If Jeana rents ovens on her own, it will cost $40,000. If Jody rents ovens on her own, it willcost $60,000. If they consolidate baking operations and share ovens, the total cost will be $80,000.1. Calculate Jeana's and Jody's respective cost of the shared ovens under the stand-alone cost-allocationmethod.2. Calculate Jeana's and Jody's respective cost of the shared ovens using the incremental cost-allocationmethod assuming (a) Jeana is the primary party and (b) Jody is the primary party.3. Calculate Jeana's and Jody's respective cost of the shared ovens using the Shapley value method.4. Which method would you recommend Jeana and Jody use to share the cost of the ovens? Why?

"Since you have asked multiple sub part question we will solve the first three sub part question for…

Answered: 16-32 Common costs. Jeana's Cupcake…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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? ___________
You own a firewood business that involves chopping down trees, sawing them into lumber and transporting to the market. You can cut the trees into 2X4s where they are cut down or after being transported to the market. Cutting down trees Sawing trees into lumber Transporting trees to $65 per ton the market $38 per ton $110 per ton Transporting 2X4s to $45 per ton the market a. Where should you locate the sawmill to minimize costs? Why? b. Where should you locate the sawmill if the price of lumber is $190 per ton? $215?
Lois is planning to make fancy, multi-tiered wedding cakes for the next wedding season. To make the cakes, she must invest $2900 in some special baking tools. To promote her business, she also needs to spend $6265 to advertise in the newspaper. She estimates that supplies and materials for each cake will cost $690. She is planning to set the price for each cake at $925. (a) Compute the contribution margin. (b) Compute the contribution rate. (c) Compute the break-even point in units. (d) Compute the break-even point in sales dollars. (a) The contribution margin per unit is $ (Type a whole number.) (b) The contribution rate is%. (Round to two decimal places as needed.) (c) The break-even point is cakes. (Round up to the nearest unit.) (d) The break-even point in sales dollars is $. (Type a whole number.)
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Suppose i have beautiful coffee tables i am building and the materials cost for each table is $135.00 and i pay the craftsman $25.00 per hour and it takes him 5 hours to complete one table . If you sell these tables for $869.00 what is my cost of goods sold percentage
im decides he would like start a part-time business building birdhouses. His fixed costs are minimal at $401.89 as he would build them out of his garage at home and already has all of the tools he would need. A quick look at competitor's prices leads him to believe that the average price a customer will pay for each birdhouse is $62.42. His unit variable cost for a birdhouse is $35.43 (for labour, wood and shingles). Calculate the break-even point. (Round up your answer to the next whole number.) Number of birdhouses:
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Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 5,910 $ 610 Miscellaneous $ 630 $ 400 $ 1,870 $ 730 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results. 1,660 200 $ 25,450 $ 7,210 $ 5,850 $ 885 $ 620 $ 986 $ 400 Cost per Pizza $ 4.40 $ 1,870 $ 790 $ 0.30 Cost per Delivery $ 0.15 $ 3.10 $…
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Pizza ingredients Fixed Cost Cost per per Month Pizza $ 4.50 $ 5,930 Cost per Delivery Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 620 $640 $ 408 $1,890 $740 $0.40 $ 3.20 $ 0.20 $ 1.60 In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below. Actual Results Pizzas Deliveries Revenue 1,690 210 Kitchen staff Delivery person $27,600 Pizza ingredients $ 7,390 $ 5,870 Utilities. $ 890 $ 672 $ 988 $ 408 $ 1,890 $ 796 Delivery vehicle Equipment depreciation Rent Miscellaneous…

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