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

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

Plot the relationship between number of orders per week and weekly total costs.

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

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