Market Thyme, a cooperative of organic family-owned farms, has recently started a fresh produce club to provide support to the group's member farms and to pro- mote the benefits of eating organic, locally produced food. Families pay a seasonal membership fee of $100 picked seasonal local produce to several neighborhood distribution points. Five hundred families joined the club for the first season, but the number of orders varied from week to week. Tom Diehl has run the produce club for the first season. Tom is now a farmer but remembers a few things about cost analysis from college. In planning for next year, he wants to know how many orders will be needed each week for the club to break even, but first he must estimate the club's fixed and variable costs. He has collected the following data over the club's first season of operation: Number of Orders per Week 415 Week Weekly Total Costs $26,900 27,200 24,700 25,200 27,995 25,900 27,000 28,315 26,425 25,750 435 3 285 4 325 450 360 420 8. 460 380 10 350

Market Thyme, a cooperative of organic family-owned farms, has recently started a fresh produce club to provide support to the group's member farms and to pro- mote the benefits of eating organic, locally produced food. Families pay a seasonal membership fee of $100 picked seasonal local produce to several neighborhood distribution points. Five hundred families joined the club for the first season, but the number of orders varied from week to week. Tom Diehl has run the produce club for the first season. Tom is now a farmer but remembers a few things about cost analysis from college. In planning for next year, he wants to know how many orders will be needed each week for the club to break even, but first he must estimate the club's fixed and variable costs. He has collected the following data over the club's first season of operation: Number of Orders per Week 415 Week Weekly Total Costs $26,900 27,200 24,700 25,200 27,995 25,900 27,000 28,315 26,425 25,750 435 3 285 4 325 450 360 420 8. 460 380 10 350

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 570.00 per unit Variable costs 330.00 per unit Fixed costs 960,000 per year Required: What number must Grove Audio sell annually to break even? What number must Grove Audio sell to make an operating profit of $180,000 for the year?
Please make in excel and take screenshots. A Pumpkin Pie Manufacturing Company pays on the tenth day after purchase. The average collection period is 35 days, and the average inventory age is based on inventory turnover of 9 times per year. The company spends about $16 million on operating cycle investments, and is considering a plan that would lengthen its average payable period by 20 days. If the company pays 12% per year on its investment of resources, what annual savings-if any-can it realize with this plan? Assume there is no discount for early payment of accounts payable and a year has 360 days.
Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually. The company is considering a 20% drop in selling price that it believes will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if this change is made?
The company is looking to invest $800,000 for two addition lines for production. Our current ROI targets are at 15%. These two lines would then produce annual profits of $65,000 for each line. Do you think the company should move forward with this purchase?
A cafe currently offers a cup of cafe latte for P100. The variable costs are P58 per cup, and 10,000 cups are sold annually and a profit of P200,030 is realized per year. A new design in making the coffee will increase the variable costs by 20% and Fixed Costs by 10% but sales will increase to 12,493 cups per year. If we employ the new design, at what selling price do we break even?
EFU Group is considering changing its credit period from “net 45" (which has resulted in 8 A/R "Turns" per year) to "net 60" (which is expected to result in 6 A/R “Turns" per year). EFU Group is currently producing a single product with variable costs of $150 and a selling price of $180. Additional annual credit sales of $180,000 from new customers are forecasted, in addition to the current $1.5 million in annual credit sales. The before-tax opportunity cost for each dollar of funds "tied-up" in additional receivables is 30%. Ignoring any additional bad-debt losses that may arise, should EFU Group relax their credit period?
Sharpe Knife Company expects sales next year to be $1,620,000 if the economy is strong, $860,000 if the economy is steady, and $620,000 if the economy is weak. Ms. Sharpe believes there is a 30 percent probability the economy will be strong, a 40 percent probability of a steady economy, and a 30 percent probability of a weak economy. What is the expected level of sales for the next year?
A Company manufactures and sells stationary. Last year, the stationary it sold for £15 each, andthe variable expense was £4.50 per unit. The company needed to sell 20,000 of stationary tobreak even. The operating profit last year was £16,800. The Company anticipations for thecoming year include the following: The selling price per stationary will be £18.00.Variable expenses will increase by one third. Fixedexpenses will increase by 10 per cent.If company wishes to earn £45,000 in operating profit for the coming year, the company's salesvolume in pounds must be: A. £ 427,500 B. £ 515,250 C. £ 414,000 D. £ 459,000
MicroCam produces a single product. Variable cost per unit is $25, and fixed costs are $95,000 per year. If the firm sells 5,000 units per year, what price should be charged for each unit to earn $35,000?
Please make in excel and take screenshots. A Pumpkin Pie Manufacturing Company pays on the tenth day after purchase. The average collection period is 35 days, and the average inventory age is based on inventory turnover of 9 times per year. The company spends about $16 million on operating cycle investments, and is considering a plan that would lengthen its average payable period by 20 days. If the company pays 12% per year on its investment of resources, what annual savings-if any-can it realize with this plan? Assume there is no discount for early payment of accounts payable and a year has 360 days. exercise in the image, it is in Spanish, but it is the original one. exercise in the image, it is in Spanish, but it is the original one I already translated it for you, the other image is the format... I can't translate the format, but it's easy to deduce.
A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year. These mobiles are purchased for SR 150.00 each, and the lead time is two days. The holding cost per mobile per year is 6% of the unit cost and the ordering cost per order is SR 37.50. There are 250 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP?
A retail store sells a popular cosmetic called Devine and the store manager was given $140,000 by the corporate office to improve store performance any way she thinks best. The "base case" information is a price of $28 per bottle, a contribution margin of 0.30, a customer defection rate of 17 percent, and a repurchase frequency of five times a year. These improvement funds could be used to (a) increase the contribution margin to 0.39 or (b) reduce the customer defection rate to 12 percent or (c) increase the repurchase frequency to six times per year. Assume all other variables remain at the base case level for each of the three improvement options. Use the Excel template VLC to calculate the VLC for each option and summarize your answers using the table below. Round your answers to the nearest cent. Contribution Repurchase Defection Margin Frequency Rate 0.30 5 17% The 0.39 5 17% 0.30 5 12% 6 17% $ (a) (b) Price $28 $28 $28 (c) $28 0.30 What is the best way to use $140,000 in…