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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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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Accounting
17
Selling price per unit Variable cost per unit Board feet per unit Monthly demand Chairs $80 $30 2 600 Tables $400 $200 a. 500 chairs and 100 tables b. 600 chairs and 80 tables c. 500 chairs and 80 tables d. 600 chairs and 100 tables 10 100 The company's supplier of hardwood will only be able to supply 2,000 board feet this month. What plan would maximize profits?

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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%