What is Dairy Day's contribution margin ratio? On accounting question Dairy Days Ice Cream sells ice cream cones for $5 per customer.Variable cost $1 per coneFixed cost$2,300 per monthWhat is Dairy Days' contribution margin ratio?A. 256%B. 80%C. 62%D. 600%

Step 1:- Introduction to the Variable CostVariable costs are expenses that alter as a company's…

Answered: Dairy Days Ice Cream sells ice cream…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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Muy Bueno Bakery sells its special chocolate cake for $37. The total cost to produce the cake is $25. Of this amount, $5 per unit is selling costs. The total variable cost is $15. The desired profit is $12 per unit. Determine the markup percentage on product cost. a.52% b.60% c.32% d.85%
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how many hot dogs do you need to sell to reach your target profit of $1575?
TARGET SALES UNITS Determine the number of cakes a bakery must sell to gerate $1,100 in profit based on the following information: Price per cake $14.71 Variable Cost per cake Ingredients $2.25 Direct Labor $ 1.02 Overhead $.25 Fixed Cost Per Month $4,476
Assume a Potbelly's restaurant has the following information available regarding costs at represent- tive levels of monthly sales: Monthly sales in units 5,000 8,000 10,000 Cost of food sold. $10,000 $16,000 $20,000 Wages and fringe benefits.........................4,200 4,320 4,400 Fees paid delivery help...........................1,100 1,760 2,200 Rent on building. 1,100 1,100 1,100 . 900 900 900 Utilities Depreciation on equipment... Supplies (soap, floor wax, etc.).. 1,700 1,700 Total........ .800 920 1,000 ...........1,700. ..250 340 400 Administrative costs..... $20,050 $27,040 $31,700 Required a. Identify each cost as being variable, fixed, or mixed. b. Use the high-low method to develop a schedule identifying the amount of each cost that is mixed or variable per unit. Total the amounts under each category
$50 per a. Retail selling price b. Retailer's margin c. Jobber's margin d. Wholesaler's margin' e. Direct factory labor f. Raw materials unit 20% 15% 23.5% g. All factory and administrative overheads h. Salesperson's commissions i. Sales force travel costs j. Advertising k. Total market for counter top vegetable steamers 1 million units 1. Current yearly sales of "Vesuvius" $2 per unit $1 per unit $2 per unit (if unit volume = 100,000) 10% of manufacturer's selling price $215,000 $900,000 190,000 units Questions 1. What is the contribution per unit for the "Vesuvius" brand?- hla nnete.
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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
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bed Cruse Cleaning offers residential and small office cleaning services. An average cleaning service has the following price and costs. Sales price Variable costs Fixed costs $127.00 per service 89.00 per service 119,548 per year Cruse Cleaning is subject to an income tax rate of 22 percent. Required: a. How many cleaning services must Cruse Cleaning sell in a year to break even? ook b. How many cleaning services must Cruse Cleaning sell in a year to earn an annual operating profit of $32,604 after taxes? a Required sales in a year to break even int rences b. Required sales in a year to earn an annual operating profit of $32,604 after taxes: cleaning services cleaning services
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Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120

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Dairy Days Ice Cream sells ice cream cones for $5 per customer. Variable cost $1 per cone Fixed cost $2,300 per month What is Dairy Days' contribution margin ratio? A. 256% B. 80% C. 62% D. 600%