a. Assuming equal sales of every product, compute the monthly volume needed to break-even? ) What is the required daily sales assuming 22 operating days a month? b. If based on an expert opinion, the most likely sale of fries is 3x the cheese sticks sold and lumpiang shanghai is 2x the amount of cheese sticks sold, what will be the break-even volumes? ). What is the required daily sales assuming 22 operating days a month?
a. Assuming equal sales of every product, compute the monthly volume needed to break-even? ) What is the required daily sales assuming 22 operating days a month? b. If based on an expert opinion, the most likely sale of fries is 3x the cheese sticks sold and lumpiang shanghai is 2x the amount of cheese sticks sold, what will be the break-even volumes? ). What is the required daily sales assuming 22 operating days a month?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer I really need help
Transcribed Image Text:Peter loves potato fries, cheese sticks and lumpiang shanghai very much. His recipes are indeed
delighting. His friends encouraged him to open a shop and he tried considering.
He looked for a place for the shop at Panay Ave. and found a stall for rent at the NBS Building. The rent
is P10,000 a month including utilities. Aside from this, he needs to hire a person to man the booth and
the salary should be 15,000 a month. Other costs will be P10 per serving of fries, P12 per serving of
cheese sticks and P15 per serving of lumpiang shanghai.
He also needs to buy the equipment he will use and everything costs P20,000. The equipment is use-
able for 5 years.
Looking around, he noticed that there are other sellers near the area and he cannot price to high. He
estimated that he can sell the items as follows: P25 per serving of fries, P25 per serving of cheese sticks
and P35 per serving of lumpiang shanghai.
a. Assuming equal sales of every product, compute the monthly volume needed to break-even?
) What is the required daily sales assuming 22 operating days a month?
b. If based on an expert opinion, the most likely sale of fries is 3x the cheese sticks sold and
lumpiang shanghai is 2x the amount of cheese sticks sold, what will be the break-even volumes?
What is the required daily sales assuming 22 operating days a month?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education