Kate figures that based on her target ROS she will have to sell 20, 500 units of PickleKeeper, astorage unit for cucumbers. Kate sells the product direct to consumers for $0.59 and spends $0.29 per unit to manufacture and sell it. With fixed costs of $5,000, her target ROS % must bearound 9.5%. (Round your answer to the nearest 50 units when choosing an option frombelow). Question 1 options: True False

The ROS ratio, or Return on Sales ratio, is a financial metric used to assess a company's…

Answered: Kate figures that based on her target…

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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You have two goods, 1 and 2, each with a unit cost of $30. You are selling to a market consisting of three consumers (each wanting at most one unit of each product) with reservation prices as follows: Reservation Price ($) For 1 Consumer For 2 Peter 20 100 Paul 60 60 Mary 100 20
avi sells seashore paintings. His annual Fixed Costs are $1,000 and the Variable Costs are $8 per painting. If Xavi sells his paintings for $15, and sells 50 paintings per year more than his breakeven volume, what is his average cost per painting?
Kylie's Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase her fixed costs by $58. What would happen if she purchased the new oven to realize the variable cost savings of $0.10 per cookie, and what would happen if she raised her price by just $0.20? She feels confident that such a small price increase will decrease the sales by only 30 units and may help her offset the increase in fixed costs. Given the following current prices how would the break-even in units and dollars change if she doesn't increase the selling price and if she does increase the selling price? Complete the monthly contribution margin income statement for each of these cases. Round your answers to two decimal places. Round break-even units to a whole number. Selling Price, Variable Cost and Fixed Cost Change Analysis With CurrentPrice With DecreasedVC andIncreased FC With Increased SP,Decreased VC,and Increased FC Sales Price per Unit $1.70 $fill in the blank 1…
AB LLC wants to introduce a new refrigerator into the market. The estimated price of each refrigerator is RO 200. The required profit margin is 25% of sales. The target cost for the new refrigerator is: a. RO 150 b. RO 215 c. RO 115 d. RO 250
You own a restaurant and are considering additional waiters. Alfred’s pay scheme would be $120 per evening. Blanchard’s pay scheme would be $10 per table served. A. Which would be considered a variable coat and which a fixed cost? B. Charles, a third potential waiter, asks for $60 per evening plus $5/table. From the perspectives of Alfred, Blanchard an Charles, who is taking the most risk and who the least? Who has the most to gain and who the least? C. As you are about to choose, Dutch enters and offers the following: He will accept $7.50/table but wants a guaranteeof minimum $30 per evening. Comparing Charles’ and Dutch’s offers, where do they “break even” for you (i.e., at how many tables will you be paying them the same amount)?
Kylie's Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase her fixed costs by $59. What would happen if she purchased the new oven to realize the variable cost savings of $0.10 per cookie, and what would happen if she raised her price by just $0.20? She feels confident that such a small price increase will decrease the sales by only 20 units and may help her offset the increase in fixed costs. Given the following current prices how would the break-even in units and dollars change if she doesn't increase the selling price and if she does increase the selling price? Complete the monthly contribution margin income statement for each of these cases. Round your answers to two decimal places. Round break-even units to a whole number. Selling Price, Variable Cost and Fixed Cost Change Analysis Sales Price per Unit Variable Cost per Unit Contribution Margin per Unit Fixed Costs Break-even in Units Break-even in Dollars Unit Sales, Expected Sales…
Eddie is purchasing a fridge and must choose between fridge A and B. Fridge A is 500 W, has an upfront cost of $1,200, a lifetime of 10 years, an efficiency of 52%, and a resale value of $290. Fridge B is 300 W, has an upfront cost of $2,500, a lifetime of 16 years, an efficiency of 70%, and a resale value of $510. Electricity costs $0.10 per kWh. Inflation is 2.0% per year. Based on a calculation of net present value and the difference in NPV between the fridges, which fridge should you purchase? If the inflation is now 12% instead, what would be the NPV of each fridge?
Maria was asked to go to the market to buy 2 1/2 kilos of pork, 1/4kilo of garlic, and 6 pieces of saba. One kilo of pork costs PhP215, 1 kilo of garlic costs PhP105, and one piece of saba costs PHP2.30. If Maria is given PhP700, will she be able to buy everything she was asked to buy? If yes, how much change is left, if any? Pedro needs to call his classmates to give them final instructions about their class project. He thinks he will need about 2 minutes to talk to each one of them. If his cellular phone has a current 7. 8. load worth PhP425 and a call would cost him PhP6.15 per minute, how many of his classmates will he be able to talk to? If the old price of a product is PhP100 and the new price is PHP500, what is the percentage increase in the price? 9.
8. Maria, store manager for SportsHaven, does not know how to price a garden tractor that cost the store $349. Maria knows her boss wants a 45% markup on cost. Can you help Maria price the garden tractor? (Round your answer to the nearest cent.)
Pedro sells port wine for $36 per bottle. His fixed costs are $1,430. Variable costs are $11 per bottle. Lori approaches Pedro about creating a special wine for her daughter's upcoming wedding. Lori will buy 50 bottles of Pedro's wine, but the order will have fixed costs for special labeling and delivery of $300. Pedro wants to go into the negotiations with Lori knowing the minimum price he can charge per bottle and not lose money on the order. What is that minimum price?

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