A company is trying to decide whether to include a bakery section in its stores. Bakingthe pies in-house would cost $80 per day and $1 per pie. Pies can be purchased for $4 eachfrom a local bakery, or $3 each from a large regional bakery. The regional bakery requires aminimum purchase of 25 pies per day. Which alternative would you recommend? Show thesolution on graph as well.

Companies try to reduce the overall cost and they try to select the best minimum cost alternative…

Answered: A company is trying to decide whether…

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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A retired auto mechanic hopes to open a customizing shop installing heated or ventilated seats. The central city location would involve fixed monthly costs of $6,750 and labor, materials, and transportation costs of $26 per car. The outside location would have fixed monthly costs of $4,150 for labor, materials, and transportation costs of $33 per car. Dealer price at either location will be $90 per car. a. Which location will yield the greatest profit if monthly demand is (1) 250 cars? (2) 350 cars? 250: cars ___________yields the greatest profit 350: cars ____________ yields the greatest profit b. At what volume of output will the two sites yield the same monthly profit? (Round value to the nearest whole number>)
A clothing retailer is going to mail out 10,000 catalogues. It costs $2 to mail out each catalogue. When a customer places an order from a catalogue assume a profit of $50 per order is earned. It is assumed that 5% of those who receive a catalogue will place an order however, this number can vary. Use the file below to help you with your tables. Assume that: [total profit = total profit made from the orders – the amount spent on mailing out the catalogues]. a) Use a one-variable data table to determine how the total profit earned from the mailing will vary depending on a response rate between 4% and 10% (with increments of 2%). b) Create a two-variable data table to show how the total profit changes with a varying response rate and number of catalogues mailed. Vary the response rate between 4% and 10% with increments of 2% and vary the number of catalogues mailed from 10,000 to 30,000 at increments of 5000.
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 Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.00 Kitchen staff $ 6,050 Utilities $ 680 $ 1.00 Delivery person $ 2.80 Delivery vehicle $ 700 $ 2.20 Equipment depreciation $ 456 Rent $ 2,010 Miscellaneous $ 800 $ 0.20 In November, the pizzeria budgeted for 1,770 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 1,870 Deliveries 190 Revenue $ 26,800 Pizza…
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?
I need help figuring out how the Break Even units. You have conducted some market research for style and size of products you want to use to launch your business. The market research has indicated the following sales price ranges will be optimal for your area depending on style of products you choose to sell: ● Collars o With pricing at $20 per collar, you can expect to sell 30 collars per day. o With pricing at $24 per collar, you can expect to sell 25 collars per day. o With pricing at $28 per collar, you can expect to sell 20 collars per day ● Leashes o With pricing at $22 per leash, you can expect to sell 28 leashes per day. o With pricing at $26 per leash, you can expect to sell 23 leashes per day. o With pricing at $30 per leash, you can expect to sell 18 leashes per day. ● Harnesses o With pricing at $25 per harness, you can expect to sell 25 harnesses per day. o With pricing at $30 per harness, you can expect to sell 22 harnesses per day. o With pricing at $35 per harness, you…
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A vendor specializing in outdoor gear offers customers three ways to place orders for home delivery. Customers can place orders either in the store, online, or via telephone using a catalog. Of the orders, one-half are made online with one-quarter each made in stores or via telephone. Of the online orders, 40% are only for clothing, 40% are only for camping supplies, and 20% are for both. For orders placed in the store, all are for clothing (to order a size that is not in stock). Among orders placed via telephone, 60% are only for clothing, 20% are only for camping supplies, and 20% are for both. Answer parts (a) and (b).
please show all work and preferably on paper 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?
Use CVP and compute the food covers necessary to achieve breakeven for a single-product restaurant with total fixed costs of $16,000, an average check of $15, and a variable cost per cover of $7. Prove the accuracy of your answer.
Kindmart is an international retail store. Kindmart’s managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and a variable cost of $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders: Monthly Number of Orders Probability 300,000 0.25 500,000 0.45 700,000 0.30 Q2. What is the expected cost of each plan?

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