Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 24 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.50 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $32,500 and the variable costs are $1.50 per pizza. The pizzas sell for $12.00 each. If Janelle is expecting that the pizza shop is going to be able to sell 10,000 pizzas, then she should select oven

Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 24 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.50 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $32,500 and the variable costs are $1.50 per pizza. The pizzas sell for $12.00 each. If Janelle is expecting that the pizza shop is going to be able to sell 10,000 pizzas, then she should select oven

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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Ashley’s company is looking to add two new printers that will increase fixed costs by $75,000. The variable costs are $50 per order. The two new printers allow the business to increase their orders by 5000 annually. How many orders would have to be added to justify buying these new printers, vs not making any changes and continuing as they are? What other considerations might you consider in whether or not to make this purchase or not?
Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Truckel make or buy the wickets? a. Buy; savings = $15,000 b. Buy; savings = $5,000 c. Make; savings = $10,000 d. Make; savings = $5,000
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Birkenstock is considering adding a new Big Buckle sandal to its current product offerings. Birkenstock expects to price the shoes at $125 per pair. The variable costs to produce one pair are estimated to be: $20 per pair direct materials; $25 per pair direct labor; $5 per pair shipping costs and $5 per pair miscellaneous overhead. The fixed costs for this line of shoes are: $50,000 advertising/promotion; $125,000 manufacturing plant manager salary; $350,000 depreciation expense on manufacturing equipment; and $50,000 other miscellaneous fixed costs. • Birkenstock's best guess is that they will sell 12,000 pairs of Big Buckle sandals in 2021. What is Birkenstock's expected 2021 profit on this product? Type your answer in the first blank below.
A local pizza shop owner decides to hire an economic consultant to help him set his prices. Currently, one slice of pizza costs $2 and the store sells about 800 slices per week. The pizza shop's current revenue from sales is equal to $____. The economic consultant estimates that the price elasticity of demand is equal to -0.25, and suggests that the shop owner should increase the price of a slice of pizza by $0.50; that is, the consultant recommends increasing the price of pizza by ____%. The consultant claims that doing so would (a. Increase b. Decrease or C.have no effect on)_____ the number of slices sold by ____% or ____ slices. As a result, the economist predicts that the new revenue would be ____ Thus as a result of the increase in the price there is ____ in revenue. This is due to the fact that the pizza shop owner was operating on the ____ portion of the demand curve. (fill in the blanks)
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Hw.3. Jenelle Heinke, the owner of Ha'Peppas Pizza is considering a new oven in which to bake the firm's signature disk, veggie pizza. Oven type A can handle 25 pizzas per hour. The fixed costs with oven A are $25,000 and the variable costs are $2.50 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed cost associated with oven B is $30,000 and the variable costs are $1.50 per pizza. The pizzas sell for $15 each. a) What is the break-even point for each oven? b) what is fixed coast? c) what is revenue? d) variable coast? what is BEP for pizzas?
Apple Incorporated, the worlds leading manufacturer of mobile phones, currently sells their cellphones for 90,000 per unit. This phone costs 60,000 to manufacture. Pineapple Company, the second leading manufacturer of cellphones, revealed that they would be unveiling a new model of phone that will sell for 70,000. This new phone contains all the features and performs at par with Apple’s phones. To keep up with the competition, Apple management believes that they should lower the price to 70,000. The Marketing Department also believes that the new price will cause sales to increase by 10% even with a new cellphone in the market. Apple currently sells 150,000 units of their phones annually. What is the target cost of Apple’s products if the target operating income is 20% of sales?
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I need help with requirement 2 please.