General Accounting Berry Bites Inc. sells fruit tarts at a selling priceof $6 per tart. The variable cost per tart is $2, andthe company's total fixed costs are $4,500.February, Berry Bites Inc. sold 2, 000 tarts.InHow much does each tart contribute to paying for fixedexpenses and generating profit?a. $4.00b. $2.00c. $6.00d. $3.50

Step 1: Define Definition of Contribution Margin per UnitThe Contribution Margin per Unit is the…

Answered: Berry Bites Inc. sells fruit tarts at a…

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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Raven Inc. sells a single product for $50. Variable costs include $29.00 for each unit plus a $7 selling expense per unit. Fixed costs are $276,920 per month. a. What is the contribution margin percentage? Contribution Margin b. What is the break-even sales revenue? Break-Even Sales Revenue c. What sales revenue is needed to achieve a $250,740 per month profit? Total Sales Revenue Needed
Currently, Sweet Treats Bakery sells 1,200 cupcakes per month. The owners would like to increase net income above what is currently earned. Fixed costs are $1,500 per month and their contribution margin is $3 per cupcake. What would be a reasonable net income goal? O $1,800 O $2,600 O $2,100 O $5,600
White Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?
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