3. A. Using the following Income Statement, determine the number of sno-cones that Lulu's Sno-Cone Stand must sell to break even. Sales - COGS = Gross Margin SG&A = Operating Income Depreciation = Net Income $500 $200 $300 $150 $150 $50 $100 (200 sno-cones @ $2.50) B. Lulu want to reduce her breakeven point. Which has the greater effect on her breakeven - a 10% reduction in SG&A or a 10% reduction in COGS? Show why.

3. A. Using the following Income Statement, determine the number of sno-cones that Lulu's Sno-Cone Stand must sell to break even. Sales - COGS = Gross Margin SG&A = Operating Income Depreciation = Net Income $500 $200 $300 $150 $150 $50 $100 (200 sno-cones @ $2.50) B. Lulu want to reduce her breakeven point. Which has the greater effect on her breakeven - a 10% reduction in SG&A or a 10% reduction in COGS? Show why.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question 2. The marketing manager for Tim Hortons is attempting to price a cup of coffee. She knows that the cost of the coffee is $0.14 per cup, and expenses are 30% of the regular selling price. She would like the coffee to achieve an 88.24% markup on selling price.a) What is the regular selling price for a cup of coffee?b) What is the profit per cup?c) What is the markup on cost percentage?
Subject :- Accounting
REQUIRED Use the information provided below to answer each of the following questions independently: 2.1 Calculate the break-even quantity. (2 Marks) 2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. (4 Marks) 2.3 Determine the selling price per unit if a net profit of R624 600 is desired. (4 Marks) INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units 2. Selling price per unit R200 3. Variable manufacturing costs per unit: Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: Fixed marketing and administrative costs R100 000 Sales commission 10% of sales
the answer is incorrec
A firm sell a single product for $6. Its variable cost per unit is $4 and fixed costs are $50. Ignoring income taxes, the amount of sales revenue needed for $20 profit is Select one: a. $210. b. $150. c. $35. d. $25.
3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution Answer is not complete. per snowboard 4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Operating income X Answer is not complete.
Part 1: Use the Value per Products Description bar chart.1. Which product has the highest profit value?2. What is the profit value for the product with the highest profit value?3. Do any of the products have a negative profit value (the company is losing money on them)?4. If there are products with a negative profit value, which products are those?5. Do you think the company should keep selling the “Shirt Girls (pink)” product? Why or whynot?
H. K 35 36 TABLE A TABLE B Annual Fixed Costs (TL) Marketing, Selling and Distribution Expenses Low Option High Option 725,000.00 37 Annually Estimated Annually Estimated Sales Administration Expenses 1,250,000.00 38 Sales 30,000.00 1,285.00 15,000.00 1,443.00 39 Price (TL) $4 Price (TL) 2$ R&D 379,000.00 40 Direct Fixed Costs 4,750,000.00 41 Materials Number Required Unit Costs (TL) Materials Number Required rqaaS 42 Stove 1 172.25 Stove 1 202.25 43 Oven 1 242.15 Oven 1 252.15 TAX RATE 44 Display Screen 45 Driver 1 19.25 Display Screen 2 36.24 2 18.10 Driver 2 18.10 20% 46 Electronic Card 1 11.97 Electronic Card Bluetooth 1 11.97 47 Bluetooth 1 11.16 1 11.16 48 Fan 2 7.99 Fan 8 7.99 49 Light Bulb 1 Light Bulb Smart Connectivity 4.99 5.99 50 39.99 51 Direct Labor Costs 85.32 52 Packaging Cost Per 49.27 Direct Labor Costs 10% Increase from LowOption's Direct Labor Cost Increase from LowOption's Packaging Cost 53 Packaging Cost Per Unit 4% 54 Instructions Answers