Break-Even AnalysisThe Parents for Better Schools of Fresno, California,collected recipes from members and published acookbook entitled Food for Everyone. The book will sellfor $20 per copy. The chairwoman of the cookbookdevelopment committee estimated that the club neededto sell 800 books to break even on its $3,600investment.What is the variable cost per unit assumed in theParents for Better Schools' analysis? Round youranswer to the nearest cent.$[per unit

Selling Price per Unit = 20 Sale of 800 units to break even the investment of 3600.

Answered: Break-Even Analysis The Parents for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $245 each. José believes he can produce a birdhouse for a total cost of $200 per unit, and he plans a 25% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price E per unit Required A Required B >
Required information [The following information applies to the questions displayed below.] C. W. McCall sells a goldplated souvenir mug; McCall expects to sell 1,600 units for $45 each to earn a $25 contribution margin per unit. Janice McCall, president, expects the year's total market to be 32,000 units. For the year just completed, the local college won the national hockey championship, and as a result, the total actual market was 100,000 units. C. W. McCall sold 3,000 units and calculates sales variances using contribution margin. What is the firm's market share variance? Market share variance
Allison Arkin sells homemade knit scarves for $25 each at local craft shows. Her contribution margin ratio is 60%. Currently, the craft show entrance fees cost Allison $900 per year. The craft shows are raising their entrance fees by 20% next year. How many extra scarves will Allison have to sell next year just to pay for rising entrance fee costs? Begin by identifying the general formula to compute the breakeven sales in units. + = Breakeven sales in units
The company produces and sells athletic shoes for children. The costs associated with each pair of shoes are estimated to be $14 of variable costs and $5 of fixed costs. The shoes normally sell for $35 per pair. A local children’s athletic league has offered to buy 100 pairs of shoes for $19 each. The company has excess capacity. How much additional revenue would be earned if they accept the offer?
A dairy farmer has found that it costs $1.84 to produce each gallon of milk, and the daily fixed cost to maintain production is $345. If the farmer charges $3.29 per gallon of milk when he sells it to a large grocery store chain, how many gallons of milk does the farmer need to produce and sell to make a daily profit of $479? (Round your answer to the nearest whole number of gallons.) The farmer needs to produce and sell gallons of milk to make a daily profit of $479.
The Garden Club of Palm Springs, California, collected recipes from members and published a cookbook entitled Desert Dishes. The book will sell for $40 per copy. The chairperson of the cookbook development committee estimated that the club needed to sell 8,000 books to break even on its $40,000 investment. What is the variable cost per unit assumed in the Garden Club’s analysis?
Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $12.00 and the large kites would be $25.00 The variable cost per unit is $5.80 and $12.60, respectively. Jill, the owner, feels that she can sell 3,350 of the small kites and 1,925 of the large kites each year. The fixed costs would be $2,120 a year and the depreciation expense is $1,650. The tax rate is 34 percent. What is the annual operating cash flow? Multiple Choice $28,063 $15,018 O $31224 $28.624 $30,023
Last month Annie's Homemade sold 5,000 servings of ice cream for $5.00 each. Its variable cost is $1.25 per serving and its total fixed costs were $11,000. Required: 1. What was last month's margin of safety? 2. What was last month's margin of safety percentage? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What was last month's margin of safety? Margin of safety
Golden Gate Novelties (GGN) sells souvenir key chains at the local airport. GGN charges $12.00 per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on, is $10.40. The annual fixed cost for GGN is $15,000. Required: a. How many cases must Golden Gate Novelties sell every year to break even? Note: Do not round intermediate calculations. b. The owner of GGN believes that the company can sell 12,500 chains a year. What is the margin of safety in terms of the number of chains? a. Break-even point b. Margin of safety chains chains
Seved Help Save & Exit Submit A company purchases fruit from farmers for $2.00 a pound. The fruit can be sold for $3.20 a pound or it can be used to make jelly. Each case of jelly contains three-quarters of a pound of fruit and can be soid for $4.40. In addition to the cost of the fruit, making and selling each case of jelly incurs additional variable costs of $1.10 per unit. The monthly fixed costs associated with making the jelly include: O Qu Jelly production salaries Depreciation of jelly-making equipment Salary of salesperson dedicated to selling jelly $4,000 400 2,000 Total fixed costs $6,400 Colla The jelly-making equipment does not wear out through use and it has no resale value. Assuming the company makes and sells 8,000 cases of Jelly. what is the financial advantage (disadvantage) of continuing to process fruit into jelly? Multiple Choice $(5,200) $(5,600)
Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single consultation is priced at $750.00. The variable costs of a consultation total $330.00 consisting mostly of labor and supplies. Annual fixed costs are $102,900. Gardendale Associates is subject to an Income tax rate of 24 percent. Required: a. What total revenue does Gardendale have to generate from selling consultations to break even? b. What total revenue does Gardendale have to generate from selling consultations to earn an annual operating profit of $106,400 after taxes? Break-even revenue Required revenue

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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

SEE MORE TEXTBOOKS