Bubba Steakhouse has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials = $4,080 Hourly labor (variable) = $5,200 Rent (fixed) $1,755 Depreciation = $770 Other fixed costs = $530 Each steak dinner sells for $12.00 each. How much would profit increase if 10 more dinners were sold?
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- You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt The labor cost is $5 per shirt. Additionally, the cost of materials will be $10 per shirt. The administrative costs of operating the company are estimated to be $60,000 annually, and the sales and marketing expenses are $20,000 a year. What is the break-even in units and BEP in dollars? Formulas: Contribution Margin = Unit Selling Price-Unit Variable Cost Profit - Total Revenue - Total Cost or Profit - Quantity Sold (Selling Price per unit - Variable Cost per unit) - Fixed Cost Fixed Cost Break-even (quantity) = Unit Selling Price - Unit Variable Cost Break-even ($) = Break-even (quantity). X Quantity Sold Fixed Cost + Profit Desired Unit Selling Price - Unit Variable Cost Target Quantity for certain profit =Super Clinics offers one service that has the following annual cost and volume estimates: Variable cost per visit = $10 Annual direct fixed costs = $50,000 Allocation of overhead costs = $20,000 Expected volume = 1,000 visits What price per visit must be set if the clinic wants to make an annual profit of $10,000 on the full cost of the service?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
- You need 1,000 units of product Y per month. You currently make product Y in-house at a cost of $7/unit, which consists of $2/unit of fixed costs and $5/unit of variable costs. An outside supplier has offered to manufacture product Y for you at a wholesale price of $2 per unit. If you outsource the production of Y to the outside supplier in the short term, your profit will: increase by $3,000 decrease by $2,000 remain the same decrease by $3,000 increase by $2,000A manufacturer of sunglasses has a fixed cost of $50,000. This manufacturer expects to sell 5,000 pairs of sunglasses for $25.00. This price will give the manufacturer a 25 percent markup on price. Calculate the variable costs.The Chimes Clock Company sells a particular clock for $40. The variable costs are $23 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 430 clocks, what effect would the sale of additional 150 clocks have on operating income? Explain your answer. The sale of an additional 150 clocks would operating income by the amount of The total effect would amount to
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