Assume that Bene Petit sells only family-sized meals and that the average price is$5.00 per serving. Variable manufacturing costs are $1.75 per serving for customermeals and $0.75 per serving for donated meals. Variable delivery expenses are $2.00per customer delivery (with an average order size of four meals or 16 servings in eachdelivery). Variable delivery expenses for donated meals are $200 per delivery, with anaverage of 1,000 donated meals or 4,000 servings in each delivery. Other variableselling expenses are $0.30 per customer meal sold. Total fixed costs are $144,000.Assume Bene Petit plans to launch a new marketing effort to increase total sales revenue. If themarketing campaign is expected to cost $9,000, how much must total sales increase is necessaryto justify the expenditure?Multiple ChoiceO $18,000O $15,000O $20,000O $12,000

The total sales increase necessary to justify the expenditure of the marketing campaign can be…

Answered: Assume Bene Petit plans to launch a new…

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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Which term is used to represent the sales level that results in a project's net income exactly equalling zero? Group of answer choices Cash breakeven Operational breakeven Present value breakeven Financial breakeven Accounting profit breakeven
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ou estimate that your cattle farm will generate $1 million of profits on sales of $5.7 million under normal economic conditions and that the degree of operating leverage is 8.a. What will profits be if sales turn out to be $5.0 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) b. What if they are $6.4 million? (Round your answer to 1 decimal place.)
ou are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $ 76,000 immediately. If your cost of capital is 7%. What is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV? Question content area bottom Part 1 The minimum dollar amount is $XXX enter your response here .
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Assume Bene Petit plans to launch a new marketing effort to increase total sales revenue. If the marketing campaign is expected to cost $9,000, how much must total sales increase is necessary to justify the expenditure?