3. Multiple product companiesPet Park International sells cat food and dog food. Its monthly fixed costs average$620,000. Cat food sales represent 80% of the company's total revenue. Dogfood sales constitute the remaining 20%. The company has provided thefollowing information expressed on a per-case basis:Cat foodDog food.Selling ContributionPrice Margin$16$40$30(a) The total monthly sales revenue required to break-even is $(Rounded)(b) The total monthly sales revenue required to earn an operating income of$135,000 is $_(c) The company's margin of safety at a monthly sales level of $2,500,000 is$_(d) If monthly fixed costs increase by $10,000, the break-even point, expressed insales dollars, will increase to $

Break even sale is a point of sale where company don't have any profit or loss. calculation of break…

Answered: 3. Multiple product companies Pet Park…

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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Sannella Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 220 66 $ 154 Percent of Sales 100% 30% 70% Fixed expenses are $991,000 per month. The company is currently selling 8,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $74,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. What should be the overall effect on the company's monthly net operating income of this change?
Choco Corp. manufactures boxes of chocolate candies. Its basic cost and profit information is summarized below: Selling price per box: $6 • Variable cost per box: $4 • Fixed cost per year: $22,400 . The company has the capacity to manufacture up to 100,000 boxes of its candy per year. Determine the net income at a volume of 30% of capacity. $37,600.00 $4,556.33 $32,569.44 $31,458.33 $4,545.55
Sea-Jet Companies produces jet skis. Variable direct costs total $ 2,000 per unit. Variable indirect costs total $ 600 per unit. Fixed overhead costs total $ 700,000. The company pays sellers a commission of $ 400 per unit sold. Total fixed costs for the period add up to $ 200,000. Each watercraft sells for $ 5,000. The company taxes its earnings at 25%. How many $ do you have to sell to make $ 180,000 profit before tax
A factory sells an item to the wholesalers at a profit of 5%. The wholesaler sells the item to the retailer at a profit of 10%. The retailer sells the item to the public at a profit of 25%. All businesses add VAT of 15%. Required: 2.1 Complete the following table. Factory Wholesaler Retailer Cost Price R 600 ? 5 430,00 ? 3 345,60 ? ? 100,00 ? ? Profit ? ? 2.2 Complete the table below by calculating the missing amounts. Amount (R) VAT (R) 156,80 ? ? VAT ? ? ? 15,68 0 Exempt Selling Price ? ? ? TOTAL (R) ? ? 4058,40 ? ? 74,90 ?
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Banjo Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. Company records show the following data relating to these two products: Standard Deluxe Selling price per unit P140 P155 Variable production costs per unit P70 P110 Variable selling and admin, expense per unit P 11.50 P 18 Expected monthly sales in units 600 1,200 The company's total monthly fixed expense is P40,000. The break-even in sales pesos for the expected sales mix is P
Tucker Pup's Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog- days occupancy was at an annual low of 150 days, the average cost per dog-day was $65. In July, when dog-days were at a capacity level of 600, the average cost per dog-day was $20. a. Develop an equation for monthly operating costs. b.Determine the average boarding cost per dog-day at an annual volume of 4,500 dog-days.
Using this information below, answer the following question: What is the Net Income required? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Group of answer choices $1,080,000 $1,010,000 $1,000,000 $1,090,000
Island Novelties, Incorporated, of Palau makes two products-Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Selling price per unit Variable expense per unit Number of units sold annually Fixed expenses total $652,800 per year. Hawaiian Fantasy $ 30 $21 30,000 Tahitian Joy $ 100 $ 25 6,000 Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. b. Compute the company's break-even point in dollar sales. Also, compute its margin of safety in dollars and its margin of safety percentage. 2. The company has developed a new product called Samoan Delight that sells for $30 each and that has variable expenses of $18 per unit. If the company can sell 12,500 units of Samoan Delight without incurring any additional fixed expenses: a. Prepare a revised contribution…
5. The Goldielocks company produces 3 products - Hot Product, Cold Product, Just Right Product. The variable expenses and sales price of all the products are given below: Just Right Prod. $50 Hot Prod. Cold Prod. Sale price per unit Variable exp per unit $ 200 $ 100 $ 100 $ 75 $25 The total fixed expenses of the company are $50,000 per month. For the coming month, Goldielocks expects the sale of the 3 products to be in the following ratio: Hot Product - 20% Cold Product - 30% Just Right Product - 50% Compute the following: Weighted-average contribution margin? How many total products must Goldielocks sell to break-even? How many of each product must Goldielocks sell to break-even? а. b. с. d. How much revenue will Goldielocks earn with this sales mix?

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