Aa 86. A nutrition enthusiast is weighing the pros and cons ofkeeping a few chickens in his backyard, reasoning thateggs that he doesn't eat he can sell to friends andneighbors. One trip to his local hardware store later, hereturns with $630.00 worth of lumber, paint and carpetand a weekend of fun assembling a chicken coop. Hestarts small, and invests another $21.00 in two barredrock and two buff orpington hens. A 50-pound sack oflayer pellets costs $16.20 and water is essentially free. Ittakes four hens a month to work their way through thesack of feed and during that time he collects and sells 97eggs at $4.70 per dozen. a) What is the contributionmargin to the fixed cost generated per month? b) Howmany months will pass before he realizes a profit fromthis business? c) If he wishes to make profit after 6months what should be the selling price per dozeneggs?

Cost-Volume-Profit analysis is an essential tool for businesses to evaluate different scenarios and…

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?