4:56<M 6 M Search results - y...cesM Question Mode: M...Cove's Cakes is a local bakery. Price and cost information follows:Price per cakeVariable cost per cakeE6-4 (Algo) Analyzing Changes in Price, Cost Structure, Degree of Operating Leverage [LO 6-4, 6-5]IngredientsDirect laborOverhead (box, etc.)Fixed costs per month_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmic$ 14.21Required 12.161.170.144,403.40Required:1. Calculate Cove's new break-even point under each of the following independent scenarios:a. Sales price increases by $1.30 per cake.b. Fixed costs increase by $455 per month.c. Variable costs decrease by $0.26 per cake.Required 2 Required 3Savedd. Sales price decreases by $0.60 per cake.2. Assume that Cove sold 435 cakes last month. Calculate the company's degree of operating leverage.3. Using the degree of operating leverage, calculate the change in profit caused by a 13 percent increase in sales revenue.Complete this question by entering your answers in the tabs below.< Prevmpus Login X M1 of 4Next >Help

The break-even point refers to the point of sales at which the total expenses of the product is…

Answered: E6-4 (Algo) Analyzing Changes in Price,…

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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E6-3 (Algo) Determining Break-Even Point, Target Profit, Margin of Safety [LO 6-1, 6-2, 6-3] Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per cake Ingredients Direct labor Overhead (box, etc.) Fixed costs per month Required: $ 13.71 2.26 1.13 0.24 3,628.80 1. Determine Cove's break-even point in units and sales dollars. 2. Determine the bakery's margin of safety in sales dollars if it currently sells 430 cakes per month. 3. Determine the number of cakes that Cove must sell to generate $2,700 in profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine Cove's break-even point in units and sales dollars. Note: Round your Break-Even Units answer to the nearest whole number. Round your other intermediate calculations and sales dollars answer to 2 decimal places. Break-Even Units Break-Even Sales Dollars Cakes Required 1 Required 2 >
The information below relates to the only product of Catherine Company: Exercise 4-13 Sales price per unit Variable cost per unit Fixed costs per year P48 36 P240,000 REQUIRED: i Compute the contribution margin ratio and the peso sales volume required to break-even. 2. Assuming that the company sells 75,000 units during the year, compute the margin of safety sales volume. Exercise 4-14 Cristina Corporation has fixed costs of P72,000 per month. It sells two products as follows: Sales Variable Contribution Price Cost Margin Product A P20 P8 P12 B 20 14 REQUIRED: 1. What monthly peso sales volume is required to break-even if three units of product A are sold with one unit of product B? 2. What monthly peso sales volume is required to break-even if one unit of product A is sold with three units of product B?
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae Variable costs per sundae: Ingredients Direct labor Overhead Fixed costs per month Required: 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $18,000. $5.00 3. Calculate Izzy's new break-even point in units for each of the following independent scenarios: a. Sales price decreases by $0.50. b. Fixed costs decrease by $300 per month. c. Variable costs increase by $0.50 per sundae. 4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $50,000, if sales price increases by $0.50 and variable costs increase by $0.30? Required 1 Required 2 1.35 0.45 0.20 $ 9,000 Complete this question by entering your answers in the tabs below. Break-even units Break-even sales Required 3 Required 4 Determine Izzy's break-even point in units and sales dollars. sundaes
Break-Even Point Sheridan Inc. sells a product for $90 per unit. The variable cost is $50 per unit, while fixed costs are $225,600. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $97 per unit. a. Break-even point in sales units fill in the blank ? unitsb. Break-even point if the selling price were increased to $97 per unit fill in the blank ? units
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v.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAsslghmehtSesslohLocator=&lnprogress=lalse Update Target Profit Trailblazer Company sells a product for $155 per unit. The variable cost is $80 per unit, and fixed costs are $585,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $157,950. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $157,950 units
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.
Current Attempt in Progress Wildhorse Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Wildhorse believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has foxed costs of $13,868.100 Sales mix is determined based upon total sales dollars. (a) What is the company's break-even point in total sales dollars? At the break-even point, how much of the company's sales are provided by each type of service? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places eg.0.22 and round final answers to O decimal places, eg 2.510) Total break-even sales Sale of mail pouches and small boxes Sale of non-standard…
3. Elmwood Pinecone sells fake Christmas trees with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the Elmwood’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the Elmwood’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of November when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Elmwood Pinecone Contribution Margin Income Statement For the Month of November ? ? ? ? ? ? ? ? ? ? How many trees will Elmwood need to sell…
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