Exercise 3-27 (Algo) Basic Decision Analysis Using CVP (LO 3-1) Belleterre Tiles makes tiles for flooring and other applications. The CFO of the company provides you with the following information for the period October through December, the company's third quarter: Belleterre Tile Revenues and Costs Third Quarter Total quantity sold Total revenues Total variable costs. Total fixed costs 126,600 tiles $ 483,612 368,406 109, 200 Required: a. What is the average selling price per tile? Note: Round your final answer to 2 decimal places. b. What is the average variable cost per tile? Note: Round your final answer to 2 decimal places. c. What is the average contribution margin per tile? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. d. What is the current operating profit for a quarter? Note: Do not round intermediate calculations. e. What is the break-even point? Note: Do not round intermediate calculations. f. The CFO tells you that the company owners have said that unless the quarterly operating profit exceeds $20,475, they will liquidate the company. How many tiles would have to be sold in a quarter for Belleterre Tile to earn $20,475 in quarterly operating profit? Note: Do not round intermediate calculations.
Exercise 3-27 (Algo) Basic Decision Analysis Using CVP (LO 3-1) Belleterre Tiles makes tiles for flooring and other applications. The CFO of the company provides you with the following information for the period October through December, the company's third quarter: Belleterre Tile Revenues and Costs Third Quarter Total quantity sold Total revenues Total variable costs. Total fixed costs 126,600 tiles $ 483,612 368,406 109, 200 Required: a. What is the average selling price per tile? Note: Round your final answer to 2 decimal places. b. What is the average variable cost per tile? Note: Round your final answer to 2 decimal places. c. What is the average contribution margin per tile? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. d. What is the current operating profit for a quarter? Note: Do not round intermediate calculations. e. What is the break-even point? Note: Do not round intermediate calculations. f. The CFO tells you that the company owners have said that unless the quarterly operating profit exceeds $20,475, they will liquidate the company. How many tiles would have to be sold in a quarter for Belleterre Tile to earn $20,475 in quarterly operating profit? Note: Do not round intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 3-27 (Algo) Basic Decision Analysis Using CVP (LO 3-1)
Belleterre Tiles makes tiles for flooring and other applications. The CFO of the company provides you with the following information for
the period October through December, the company's third quarter:
Belleterre Tile
Revenues and Costs
Third Quarter
Total quantity sold
Total revenues
Total variable costs
Total fixed costs
126,600 tiles
$ 483,612
368,406
109, 200
Required:
a. What is the average selling price per tile?
Note: Round your final answer to 2 decimal places.
b. What is the average variable cost per tile?
Note: Round your final answer to 2 decimal places.
c. What is the average contribution margin per tile?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
d. What is the current operating profit for a quarter?
Note: Do not round intermediate calculations.
e. What is the break-even point?
Note: Do not round intermediate calculations.
f. The CFO tells you that the company owners have said that unless the quarterly operating profit exceeds $20,475, they will liquidate
the company. How many tiles would have to be sold in a quarter for Belleterre Tile to earn $20,475 in quarterly operating profit?
Note: Do not round intermediate calculations.
Transcribed Image Text:a. Average selling price
b. Average variable cost
c. Average contribution margin
d. Current operating profit
e. Break-even point
f. Number of tiles
per tile
per tile
per tile
tiles
tiles
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