Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is$1,500 and the variable cost per cup of coffee served is $0.60.Required:1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels ofactivity.2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in aweek increases?Complete this question by entering your answers in the tabs below.Required 1 Required 2Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicatedlevels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.)Fixed costVariable costTotal costAverage cost per cup of coffee served500 Cups ofCoffee$0 $< Required 1600 Cups ofCoffee700 Cups ofCoffeeRequired 2 >0

Fixed cost are those cost which are are same for all production level. where as variable cost are…

Answered: Espresso Express operates a number of…

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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Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable expenses of $6.50 per carton of calendars. Of the variable expense, 74% is cost of goods sold, while the remaining 26% relates to variable operating expenses. The company sells each carton of calendars for $16.50. 1. Begin by determining the basic income statement equation. - - = Operating income Compute the number of cartons of calendars that College Spirit Calendars must sell each month to break even. 2. Compute the dollar amount of monthly sales that the company needs in order to earn $308,000 in operating income (round the contribution margin ratio to two decimal places). Begin by determining the formula. ( + ) / = Target sales in dollars 3. Prepare the company's contribution margin income statement for June for sales of 450,000 cartons of calendars 4.…
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Hapza cleaning services has opening hours that fluctuate from month to month. The electricity costs and hours of operation for past six months is listed below: Month Total hours of operation Total electricity cost January 650 $ 4 240 February 700 $ 4 400 March 800 $ 4 800 April 600 $ 4 200 May 550 $ 3 700 June 500 $ 3 600 Required: (a) Use the high-low method to estimate the cost behaviour for the complex’s electricity costs, assuming that the variable costs vary in proportion to the hours of operation. Express the total cost behaviour in formula form (Y = a + bx). What is the variable electricity cost per hour of operation? (b) During July, the complex will open for 570 hours. Predict the complex’s total electricity costs for July using the cost estimation method employed in above requirement (a). (c) What is the main drawback of the high-low method of cost estimation?
Please provide answer in text (Without image) and show calculation
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Cullumber provides shuttle service between 4 hotels near a medical center and an international airport. Cullumber uses two 10- passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is as follows. Sales (1,370 passengers) Variable costs Fuel Tolls and parking Maintenance Contribution margin Fixed costs Salaries Depreciation (straight-line) Insurance Net income Break-even point Break-even point $3,836 $ 2,359 655 12,300 1,100 1,000 $34,250 6,850 Calculate the break-even point in (1) sales dollars and (2) number of passengers. 27,400 14,400 $13,000 passengers
Native Wood Products Ltd sells hand-made coffee tables. The shop owner has divided sales into two categories according to the type of wood used in the tables, as follows: Product type Kahikatea Rimu Sales price $2,000 $1,200 Costs $1,200 $520 Sales commission $100 $60 Seventy percent (70%) of the shop's sales are rimu tables. The shop's annual fixed costs are $161,000. Required: Calculate the unit contribution margin for each product type.
Developing an Equation from Average Costs Paradise Pub is a high-end dog hotel located in New York. Assume that in March, when dog-days occupancy was at an annual low of 500 days, the average cost per dog-day was $26. In July, when dog-days were at a capacity level of 4,500, the average cost per dog-day was $10. (a) Develop an equation for monthly operating costs. (Let X = dog-days per month) Total cost = $ -$ *X (b) Determine the average cost per dog-day at an annual volume of 28,000 dog-days. (Round to the nearest cent.) $
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Variable expenses: Total variable expenses Fixed expenses: Fixed Cost per Month Total fixed expenses $1,600 4,900 8,500 2,300 2,000 The company expects to charge customers an average of $6.10 per car washed. Required: Prepare a flexible budget for October assuming either 9,000 or 10,000 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Cost per Car Washed $0.99 0.30 8.50 0.68 9,000 Cars Washed 0.07 10,000
Metlock sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books, 40% from movies, and 20% from magazines. The selling price and cost information for each of these product categories is as follows. Selling price Variable cost/unit (a) (b) Books $9 3 Your answer is correct. Books In addition, Metlock incurs facility and administrative costs that average $28,080 per month. eTextbook and Media Movies Movies Weighted-average contribution margin $ Magazines $14 Find the weighted-average contribution margin per unit for this company. (Round answer to 2 decimal places, e.g. 15.25.) Your answer is incorrect. 9 Magazines $5 units 1 Determine how many units from each product category Metlock must sell to break even. (Round answers to O decimals, e.g. 15.) units units 5.2 per unit Attempts: unlimited
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Below is the income statement for a taxi service based on the following information: Price per trip $50 Total number of trips 7,205 Required Breakeven point in units Break even point in dollars Breakeven price Please show all workings Revenue Income from golf cart transportation 360,250 Direct Expenses Fuel 6,240 Golf Cart Repairs and Maintenance 9,360 Total Cost of Sales 15,600 Gross Profit 344,650 Operating Expenses Insurances 10,000 Licence 9,650 Marketing 3,000 Uniforms 9,000 Cleaning and sanitisation 3,000 Professional Fees 6,000 Wages 93,600 Telephone and communication 14,400 Rent 12,000 Depreciation 94,860 255,510 Total Operating Expenses Finance…

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