e 1:19 I %AV h.E Opm.pdf >A) Tee Times, Inc., produces and sells the finest quality golf clubs in all of Clay County. The companyexpects the following revenues and costs in 2003 for its Elite Quality golf club sets:Revenues (400 sets sold @ $600 per set) $240,000Variable costs 160,000Fixed costs 50,0001. How many sets of clubs must be sold for Tee Times, Inc., to reach their breakeven point?a. 400b. 250с. 200d. 1502. How many sets of clubs must be sold to earn a target operating income of $90,000?a. 700b. 500c. 400d. 3003. What amount of sales must Tee Times, Inc., have to earn a target net income of $63,000 if they havea tax rate of 30%?a. $489,000b. $429,000c. $420,000d. $300,000B) The Beta Mu Omega Chi (BMOC) fraternity is looking to contract with a local band to perform atits annual mixer. If BMOC expects to sell 250 tickets to the mixer at $10 each, which of the followingarrangements with the band will be in the best interest of the fraternity?a. $2500 fixed feeb. $1000 fixed fee plus $5 per person attendingc. S10 per person attendingd. $25 per couple attending

Hi student Since there are multiple questions, we will answer only first question. If you want…

A) Tee Times, Inc., produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2003 for its Elite Quality golf club sets: Revenues (400 sets sold @ $600 per set) $240,000 Variable costs 160,000 Fixed costs 50,000 1. How many sets of clubs must be sokd for Tee Times, Inc., to reach their breakeven point? a. 400 b. 250 c. 200 d. 150

A) Tee Times, Inc., produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2003 for its Elite Quality golf club sets: Revenues (400 sets sold @ $600 per set) $240,000 Variable costs 160,000 Fixed costs 50,000 1. How many sets of clubs must be sokd for Tee Times, Inc., to reach their breakeven point? a. 400 b. 250 c. 200 d. 150

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

e 1:19 I %AV h.E O
pm.pdf >
A) Tee Times, Inc., produces and sells the finest quality golf clubs in all of Clay County. The company
expects the following revenues and costs in 2003 for its Elite Quality golf club sets:
Revenues (400 sets sold @ $600 per set) $240,000
Variable costs 160,000
Fixed costs 50,000
1. How many sets of clubs must be sold for Tee Times, Inc., to reach their breakeven point?
a. 400
b. 250
с. 200
d. 150
2. How many sets of clubs must be sold to earn a target operating income of $90,000?
a. 700
b. 500
c. 400
d. 300
3. What amount of sales must Tee Times, Inc., have to earn a target net income of $63,000 if they have
a tax rate of 30%?
a. $489,000
b. $429,000
c. $420,000
d. $300,000
B) The Beta Mu Omega Chi (BMOC) fraternity is looking to contract with a local band to perform at
its annual mixer. If BMOC expects to sell 250 tickets to the mixer at $10 each, which of the following
arrangements with the band will be in the best interest of the fraternity?
a. $2500 fixed fee
b. $1000 fixed fee plus $5 per person attending
c. S10 per person attending
d. $25 per couple attending

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