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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

See similar textbooks

Related questions

Q: where is the excel sheet ,so i can see how you get the answer. I want to see the workings please

A: Excel Workings are provided in the solution in the form of Excel snip. One can use the formula…

Q: How would you find FW with excel functions?

A: MARR is 20% EOY Cash Flow 0 $ -70,000.00 1 $ 20,000.00 2…

Q: Support your computations with relevant explanations.

A: Certainly! Here's a brief explanation of why certain items were included or excluded when…

Q: what excel formula feature would you use

A: Information Provided: Price of bond = $1135.90 Years to Maturity = 10 Annual Yield to Maturity = 8%…

Q: Determine whether each cash payment procedure is an internal control strength or weakness. Cash…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: can you hand write it instead of using excel

A: Here,Risk Free Rate is 3%Standard Deviation of Optimal Risky Portfolio is 20%Expected Return of…

Q: Please show working for Question 1 without using a spreadsheet

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Which of the following is a feature of Power Query? Change column headings so the new name appears…

A: Power Query is a data preparation and transformation tool which is part of Power BI and Microsoft…

Q: can you please type out the equation

A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…

Q: Using CVP analysis answer from d to g

A: Hi student Since you have asked for multiple subparts, we will answer only three subparts. If you…

Q: Show me the function

A: Nominal Return: It is the rate of return earned on an investment prior to any deductions regarding…

Q: hi, can you please show me how to solve this without using excel? thank you

A: Variables in the question:Interest rate = 3.75% per year compounded quarterlyQuarterly means 4 times…

Q: The following errors were found in the books of Rosco Consulting during the month: 1. Consultancy…

A: Rectification entries are those that correct the errors made in the recorded entries, without…

Q: The second paragraph or step 2, is that what I can use to create the diagram?

A: Audit Trail - A collection of papers known as an audit trail serves to verify the transactions you…

Q: Formulas are missing. which formulas did you use? Please clarify

A: The formula used is that of Future value. Future value is based on time value of money concept.…

Q: Please show a step-by-step solution. Please explain your steps on excel and code you input

A: To create a straight-line interpolation function in VBA for the given problem, follow the…

Q: What is an important advantage gained by using a spreadsheet?

A: Spreadsheet is an important tool for recording information in the form of rows and columns into…

Q: What is one of the main benefits of Excel Tables?

A: When new data is added to a row adjacent to an Excel Table, the table automatically expands to…

Q: Can you solve it in an Excel spreadsheet? because something is wrong with the asnwer. tyhank you,

A: Bonds are debt instruments issued by companies.The issuing company pays coupons to the bond holders…

Q: Is it possible to get a solution with formulas instead of excel?

A: Money's value depreciates over time, according to the time value of money idea. This is due to the…

Q: simplify this

A: Traditional costing and activity based cost in our one of the most widely use technique in order to…

Q: How do you make a two-dimensional columnar chart in excel?

A: The objective of this question is to create a two-dimensional columnar chart in Excel. This type of…

Q: Which of the following is an option for consolidating data into one table or worksheet? Use the…

A: This is a Multiple Choice Question in which we have to select the correct option.

Q: Can someone help me with the part b and c please?

A: Direct material usage variance is otherwise called as Direct Material Quantity variance. It is a…

Q: How do you access the Power Query interface?

A: To access the Power Query interface in applications like Microsoft Excel, you typically go to the…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

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

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

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

7. Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000 and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per pound. Determine the monthly break-even volume for the company. If the maximum operating capacity of Evergreen Fertilizer Company described in Problem 2 is120,000 pounds of fertilizer per month, determine the break-even volume as a percentage of capacity. • If Evergreen Fertilizer Company in Problem 2 changes 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? • If Evergreen Fertilizer Company changes 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 computed in Problem 4? If Evergreen Fertilizer Company increases its advertising expenditures by $14,000 per…
Hawk Homes, Ic., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is $13.50 per house, and its fixed costs total $14,239.50 per year. Hawk currently has the capacity to produce up to 2,800 birdhouses per year, so its relevant range is 0 to 2,800 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses this year. 2. Without ancaleuletione, detonmine llawks total contribution morgin if the company breake 3. Сн 4. Calculate Hawk's break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $21,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. O margm per umt Omarginatio. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses this year. (Enter your answers…
Hawk Homes, Ic., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is $13.50 per house, and its fixed costs total $14,239.50 per year. Hawk currently has the capacity to produce up to 2,800 birdhouses per year, so its relevant range is 0 to 2,800 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. 4. Calculate Hawk's break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $21,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses…
Hawk Homes, Inc., makes one type of birdhouse that it sells for $29.40 each. Its variable cost is $13.20 per house, and its fixed costs total $14,013.00 per year. Hawk currently has the capacity to produce up to 2,700 birdhouses per year, so its relevant range is 0 to 2,700 houses. Required:1. Prepare a contribution margin income statement for Hawk assuming it sells 1,280 birdhouses this year. 2. Without any calculations, determine Hawk’s total contribution margin if the company breaks even. 3. Calculate Hawk’s contribution margin per unit and its contribution margin ratio. 4. Calculate Hawk’s break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $25,000 this year. Determine how many birdhouses it must sell to generate this amount of profit.
Hawk Homes, Incorporated makes one type of birdhouse that it sells for $30.60 each. Its variable cost is $13.70 per house, and its fixed costs total $14,550.90 per year. Hawk currently has the capacity to produce up to 2,000 birdhouses per year, so its relevant range is 0 to 2,000 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,180 birdhouses this year. YOL
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
ABC Enterprise produces marker pens. The enterprise has a fixed cost of 600,000. Each marker pen sells for 20.00 with a variable cost of 8.00 per pen. How many marker pens must they sell to break-even?
ces Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the stove total $179,400 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 17,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $79,000 per…
Maxine's Pumps (MP) sells bilge pumps for $250 each. Each pump cost $100 to produce and MP's fixed operating costs equal $600, 000 a) what is MP's operating breakeven point b) what is MP operating income ( NOI) when 10,000 pumps are sold?
sanju
Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $150 per unit. Variable expenses are $105 per stove, and fixed expenses associated with the stove total $216,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 18,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $72,000 per month?…
Munabhai