A nutrition enthusiast is weighing the pros and c keeping a few chickens in his backyard, reasoning eggs that he doesn't eat he can sell to friends an neighbors. One trip to his local hardware store la returns with $630.00 worth of lumber, paint and and a weekend of fun assembling a chicken coop starts small, and invests another $21.00 in two ba rock and two buff orpington hens. A 50-pound s layer pellets costs $16.20 and water is essentially takes four hens a month to work their way throug sack of feed and during that time he collects and eggs at $4.70 per dozen. a) What is the contribut margin to the fixed cost generated per month? b many months will pass before he realizes a profit this business? c) If he wishes to make profit after months what should be the selling price per doz eggs?
A nutrition enthusiast is weighing the pros and c keeping a few chickens in his backyard, reasoning eggs that he doesn't eat he can sell to friends an neighbors. One trip to his local hardware store la returns with $630.00 worth of lumber, paint and and a weekend of fun assembling a chicken coop starts small, and invests another $21.00 in two ba rock and two buff orpington hens. A 50-pound s layer pellets costs $16.20 and water is essentially takes four hens a month to work their way throug sack of feed and during that time he collects and eggs at $4.70 per dozen. a) What is the contribut margin to the fixed cost generated per month? b many months will pass before he realizes a profit this business? c) If he wishes to make profit after months what should be the selling price per doz eggs?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Aa 86.
Transcribed Image Text:A nutrition enthusiast is weighing the pros and cons of
keeping a few chickens in his backyard, reasoning that
eggs that he doesn't eat he can sell to friends and
neighbors. One trip to his local hardware store later, he
returns with $630.00 worth of lumber, paint and carpet
and a weekend of fun assembling a chicken coop. He
starts small, and invests another $21.00 in two barred
rock and two buff orpington hens. A 50-pound sack of
layer pellets costs $16.20 and water is essentially free. It
takes four hens a month to work their way through the
sack of feed and during that time he collects and sells 97
eggs at $4.70 per dozen. a) What is the contribution
margin to the fixed cost generated per month? b) How
many months will pass before he realizes a profit from
this business? c) If he wishes to make profit after 6
months what should be the selling price per dozen
eggs?
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