Belleterre Tiles makes tiles for flooring and other applications. The CFO of the company provides you with the following information for the period October through December, the company's third quarter: Belleterre Tile Revenues and Costs Third Quarter Total quantity sold Total revenues Total variable costs. Total fixed costs 125,300 tiles $ 446,068 348,334 93,600 Required: a. What is the average selling price per tile? Note: Round your final answer to 2 decimal places. b. What is the average variable cost per tile? Note: Round your final answer to 2 decimal places. c. What is the average contribution margin per tile? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. d. What is the current operating profit for a quarter? Note: Do not round intermediate calculations. e. What is the break-even point? Note: Do not round intermediate calculations. f. The CFO tells you that the company wners have said that unless the quarterly operating profit exceeds $15,210, they will liquid the company. How many tiles would have to be sold in a quarter for Belleterre Tile to earn $15,210 in quarterly operating profit? Note: Do not round intermediate calculations.

Belleterre Tiles makes tiles for flooring and other applications. The CFO of the company provides you with the following information for the period October through December, the company's third quarter: Belleterre Tile Revenues and Costs Third Quarter Total quantity sold Total revenues Total variable costs. Total fixed costs 125,300 tiles $ 446,068 348,334 93,600 Required: a. What is the average selling price per tile? Note: Round your final answer to 2 decimal places. b. What is the average variable cost per tile? Note: Round your final answer to 2 decimal places. c. What is the average contribution margin per tile? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. d. What is the current operating profit for a quarter? Note: Do not round intermediate calculations. e. What is the break-even point? Note: Do not round intermediate calculations. f. The CFO tells you that the company wners have said that unless the quarterly operating profit exceeds $15,210, they will liquid the company. How many tiles would have to be sold in a quarter for Belleterre Tile to earn $15,210 in quarterly operating profit? Note: Do not round intermediate calculations.

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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Concept explainers

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.

Question

a. Average selling price
b. Average variable cost
c. Average contribution margin
d. Current operating profit
e. Break-even point
f. Number of tiles
per tile
per tile
per tile
tiles
tiles

Belleterre Tiles makes tiles for flooring and other applications. The CFO of the company provides you with the following information for
the period October through December, the company's third quarter:
Belleterre Tile
Revenues and Costs
Third Quarter
Total quantity sold
Total revenues
Total variable costs
Total fixed costs
125,300 tiles
$ 446,068
348,334
93,600
Required:
a. What is the average selling price per tile?
Note: Round your final answer to 2 decimal places.
b. What is the average variable cost per tile?
Note: Round your final answer to 2 decimal places.
c. What is the average contribution margin per tile?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
d. What is the current operating profit for a quarter?
Note: Do not round intermediate calculations.
e. What is the break-even point?
Note: Do not round intermediate calculations.
f. The CFO tells you that the company owners have said that unless the quarterly operating profit exceeds $15,210, they will liquidate
the company. How many tiles would have to be sold in a quarter for Belleterre Tile to earn $15,210 in quarterly operating profit?
Note: Do not round intermediate calculations.

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