Exercise 1-4 (Algo) Fixed and Variable Cost Behavior [LO1-4]Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of acoffee stand is $1,900 and the variable cost per cup of coffee served is $0.37.Required:1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at theindicated levels of activity.2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffeeserved in a week 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 servedCups of Coffee Served in a Week2,5002,4002,600

Lets understand the basics.Costs are mainly divided into two types which are,(1) Variable costs(2)…

Answered: Exercise 1-4 (Algo) Fixed and Variable…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Exercise 21.5 (Static) Special Order Decisions and Opportunity Costs (LO21-1, LO21-2, LO21-3, L021-4) Heavenly Treat manufactures cases of hot chocolate that are typically sold to restaurants. Its main factory has the capacity to produce and sell 12,000 cases per month. The following information is available for the factory. Sales price per case Variable cost per case: Direct materials Direct labor Variable overhead & sales commissions Fixed costs per month 40 12 10 $ 60,000 Wildwood Camps is a youth organization that serves hot chocolate at its camping facilities throughout Montana. The organization has offered Heavenly Treat $29 per case for a special-order batch of 1,000 cases. Each case would require a shrink-wrap covering because of moisture problems associated with the organization's storage warehouses. The cost to shrink-wrap the order is estimated at $3 per case. Selling costs associated with the order would be decreased by $1 per case because it would not include any sales…
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ceive full credit you must show your as a template. Practice Problems 1)Corp sells several products. Information on average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.50 Direct manufacturing labor $1.15 Manufacturing overhead $0.85 Selling costs $2.50 $125,000 ulations Annual fixed costs How much is operating income if the company sells 15,000 units? 2) If the company decides to lower its selling price by 10%, the operating income is reduced by how r hour: firm (this is conceptually similar to the O/H allocation year 2015, O/H cost estimates total $840,000 for an 2015, it decided to evaluate the use of additional ined that number of design changes, setups, and llowing information was gathered during the analysis: S 0 ! Activity level 300 design changes 5,000 setups 8,000 inspections pital Systems, are expected to use the following lospital Systems 76,000 0 10 38 e O/H cost estimate for Money Managers for a deluxe model.…
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14 Howard Cooper, the president of Finch Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 36,000 hours of services in Year 3. Required Required Required A B с $ b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Finch charges customers $80 per hour, the firm can achieve 45,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same…
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.
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aung movie to metast: what are your assumpave. EXERCISE 2-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs L02-1, LO2-4 Miller Company's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 3. Sales (20,000 units) Variable expenses. Contribution margin 4. Fixed expenses.. Net operating income. Total $300,000 180,000 120,000 70,000 $ 50,000 EXERCICE Per Unit $15.00 9.00 $ 6.00 38150123 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%? po besupp BekadW do 1 What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? Cuan and Tardot Profit Analveie 102-3-1024 102-5 102-6 og eint 01 stall What is the…
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