Homework Help is Here – Start Your Trial Now!
Business
Accounting
Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000.00, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. a) Determine the break-even volume for the company. What is the Contribution Margin? b) If Evergreen Fertilizer Companychanges the price of its fertilizer from $0.40 per pound to $0.60 per pound. What effect will the change have on the break-even volume. What is the Contribution Margin? c) Using the price of $0.60 per pounds, if Evergreen Fertilizer Companyc hanges its production process to add a weed killer to the fertilizer in order to increase sales, the variable cost per pound will increase from $0.15 to $0.22. What effect will this change have on the break-even volume.

Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000.00, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. a) Determine the break-even volume for the company. What is the Contribution Margin? b) If Evergreen Fertilizer Companychanges the price of its fertilizer from $0.40 per pound to $0.60 per pound. What effect will the change have on the break-even volume. What is the Contribution Margin? c) Using the price of $0.60 per pounds, if Evergreen Fertilizer Companyc hanges its production process to add a weed killer to the fertilizer in order to increase sales, the variable cost per pound will increase from $0.15 to $0.22. What effect will this change have on the break-even volume.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Could you please help me solve this on excel using the excel formulas?
Fomula: 0onat is the Conthbution Margin? d) New Fixed cost = New Variable cost = New Price = V = Ibs. Fomula: Prob 2 Instructions Prob 1 Prob 2 e: 1 of 1 MacBook Pro
Transcribed Image Text:Fomula: 0onat is the Conthbution Margin? d) New Fixed cost = New Variable cost = New Price = V = Ibs. Fomula: Prob 2 Instructions Prob 1 Prob 2 e: 1 of 1 MacBook Pro
Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000.00, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. 4 a) Determine the break-even volume for the company. What is the Contribution Margin? 6 b) If Evergreen Fertilizer Companychanges the price of its fertilizer from $0.40 per pound to $0.60 per pound. What effect will the change have on the break-even volume. What is the Contribution Margin? 7 8 c) Using the price of $0.60 per pounds, if Evergreen Fertilizer Companyc hanges its production process to add a weed killer to the fertilizer in order to increase sales, the variable cost per pound will increase from $0.15 to $0.22. What effect will this change have on the break-even volume. 10 11 12 13 d) If Evergreen Fertilizer Company increases its advertising expenditures by $14,000 per year and using variable cost of $0.22 and price of $0.60, what effect will the increase have on the break-even volume. 14 15 16 17 18 19 20 a) Fixed Cost 21 22 Variable cost 23 Formula box type in the formula in words that you used 24 Price = to calculate the answer. 25 26 V = Ibs. per month Formula: 27 28 What is the Contribution Margin? Fomula: 29 30 b) New Price = 31 - 32 33 V = Ibs. per month Fomula: 34 35 What is the Contribution Margin? 36 Fomula: 37 38 39 c) New Variable cost = 40 V = 41 Ibs. Fomula: 42 What is the Contribution Margin? 43 Fomula: Instructions Prob 1 Prob 2 Page: 1 of 1
Transcribed Image Text:Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000.00, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. 4 a) Determine the break-even volume for the company. What is the Contribution Margin? 6 b) If Evergreen Fertilizer Companychanges the price of its fertilizer from $0.40 per pound to $0.60 per pound. What effect will the change have on the break-even volume. What is the Contribution Margin? 7 8 c) Using the price of $0.60 per pounds, if Evergreen Fertilizer Companyc hanges its production process to add a weed killer to the fertilizer in order to increase sales, the variable cost per pound will increase from $0.15 to $0.22. What effect will this change have on the break-even volume. 10 11 12 13 d) If Evergreen Fertilizer Company increases its advertising expenditures by $14,000 per year and using variable cost of $0.22 and price of $0.60, what effect will the increase have on the break-even volume. 14 15 16 17 18 19 20 a) Fixed Cost 21 22 Variable cost 23 Formula box type in the formula in words that you used 24 Price = to calculate the answer. 25 26 V = Ibs. per month Formula: 27 28 What is the Contribution Margin? Fomula: 29 30 b) New Price = 31 - 32 33 V = Ibs. per month Fomula: 34 35 What is the Contribution Margin? 36 Fomula: 37 38 39 c) New Variable cost = 40 V = 41 Ibs. Fomula: 42 What is the Contribution Margin? 43 Fomula: Instructions Prob 1 Prob 2 Page: 1 of 1
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS