Break-Even Sales and Sales Mix for a Service CompanyZero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona,Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:FuelFlight crew salariesAirplane depreciationVariable cost per passenger-business classVariable cost per passenger-economy classRound-trip ticket price-business classRound-trip ticket price-economy class$14,06210,7715,0875545525295It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number ofseats sold for the round-trip flight. If required round the answers to nearest whole number.a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E.Assume that the overall product is 10% business class and 90% economy class seats.Total number of seats at break-evenb. How many business class and economy class seats would be sold at the break-even point?Business class seats at break-evenEconomy class seats at break-evenseatsseatsseats

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Break-Even Sales and Sales Mix for 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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Required information [The following information applies to the questions displayed below] Sub Station and Planet Sub reported the following selected financial data (5 in thousands). Sub Station's business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub's business strategy is to sell the lowest cost sub on the planet. Net sales Net Income Total assets, beginning Total assets, ending Choose Numerator Choose Numerator Sub Station Planet Sub $63,171 4,532 43,599 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (L.e. 123,000 should be entered as 123)) Choose Numerator $109,345 23,022 76,283 118,571 Return on Assets Choose Denominator Profit Margin Choose Denominator Asset Turnover Choose Desominator Return on Assets Return on assets Profil Margis Asset Turnover Asset Tunaver 0 4
< Break-Even Sales and Sales Mix for a Service Company Yellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis round-trip flight has the following operating statistics: Fuel and landing fees Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class Round-trip ticket price-economy class $7,670 Business class 5,875 Check My Work 2,775 40 30 510 It is assumed that the fuel and landing fees, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. 280 a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 10% business class and 90% economy class tickets. Round your answer to whole number. Total number of seats at break-even L b. How many business class and economy class seats…
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Problem 1 Xpress Corp. operates a fast food restaurant in San Fernando. Meals cost an average of $36 for which Xpress incurs variable costs of $14.40. Total fixed costs are $29,160. Required: a) Determine break even in units (persons) and sales dollars using the contribution margin technique. b) If the expected revenue is $ 65,000, what is Xpress' margin of safety ratio? c) If Xpress wants to earn a target income of $20,000, calculate the number of meals necessary.
Subject : accounting
Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round- trip flight has the following operating statistics: Fuel Flight crew salaries Airplane depreciation. Variable cost per passenger-business class Variable cost per passenger-economy class $8,065 6,178 2,917 55 45 Round-trip ticket price-business class 525 285 Round-trip ticket price-economy class It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 20% business class and 80% economy class tickets. Total number of seats at break-even seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats…
Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement, with amounts given in thousands, follows: Line Item Description Torch Elk Walloon Total Sales revenue $1,280 $185 $315 $1,780 Less: Variable expenses 1,115 45 252 1,412 Contribution margin $165 $140 $63 $368 Less direct fixed expenses: Depreciation 50 15 10 75 Advertising 95 85 76 256 Segment margin $20 $40 $(23) $37 Direct fixed expenses consist of depreciation and advertising. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that, each of the three products has a different marketing campaign whose advertising would be eliminated if the associated product were dropped. Assume that 30% of the Torch customers choose to buy from Charlevoix because it offers a full range of products, including Walloon. If Walloon were no longer available from Charlevoix, these customers…
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Question Content Area Multiple-Product Break-Even and Target Profit Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $62 $14 Unit variable cost $11 $8 Direct fixed cost $25,200 $47,000 Common fixed selling and administrative expenses total $70,000. Required: Question Content Area 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = fill in the blank 614f11ff0fb7fcb_1 : fill in the blank 614f11ff0fb7fcb_2 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number.…
ces Exercise 2-17 (Algo) Break-Even and Target Profit Analysis [LO2-4, LO2-5, LO2-6] Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $162,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 15,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have…
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles,, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $6,956 Flight crew salaries 5,328 Airplane depreciation 2,516 Variable cost per passenger-business class 55 Variable cost per passenger-economy class 45 Round-trip ticket price-business class 585 Round-trip ticket price-economy class 315 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 10 % business class and 90 % economy class seats. Total number of seats at break-even seats b. How many business class and economy class seats would be sold at…
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