i need this solution General accounting Mountain Peak Coffee Roasters is a specialty coffeecompany that produces and sells premium coffee beans.The company has a permanent staff of 15 employeesand additional seasonal workers during peak harvesttimes. They package their coffee in 50-pound wholesalebags sold to cafes and restaurants across the westernUnited States.Given the following financial information for the year2014:••Sales price per bag: $250Variable cost per bag: $175Total bags sold: 40,000Fixed costs for the year: $2,000,000Required: Calculate the company's operating leveragefor 2014.

Step 1: Definition of Operating LeverageOperating Leverage measures how sensitive a company's…

Answered: Mountain Peak Coffee Roasters is a…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 39P

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Cola Food Services Company operates and services soft drinks vending machines located in restaurants, gas stations, factories, etc., in four Southern states. The machines are rented from the manufacturer. In addition Cola must rent space occupied by its machines. The following expense and revenue relationships pertain to a contemplated expansion program of 20 machines. Fixed monthly expenses follow: Machine rental: 20 machines @$43.50 $870 Space rental: 20 locations @$28.80 $576 Part-time wages to service the additional 20 machines $1,454 Other fixed costs $100 Total monthly fixed costs $3000 Other data follow: Per unit per $100 of sales Selling price…
Jack’s Tracks sells 24,000 custom-designed GoKarts per year. These GoKarts are sold evenly throughout the year. The manufacturer charges Jack a $50 processing cost per order, and Jack incurs a carrying cost of $240 per year including storing each GoKart at a local warehouse. What is the economic order quantity for ordering materials?a. 100b. 1,000c. 2,000d. 10,000
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A local bakery sells 12,000 loaves of sourdough bread each year. The loaves are ordered from an outside supplier, and it takes 4 days for each shipment of loaves to arrive. Ordering costs are estimated at $18 per order. Carrying costs are $6 per loaf per year. Assume that the bakery is open 300 days a year. What is the maximum inventory of loaves held in a given ordering cycle? a. 180.02 b. 362.07 c. 268.33 d. 152.98
Berry Farm produces organic tomatoes and strawberries. In June 2024, it transported 125 boxes of strawberries with a price of $24 per box to the Bay Farmers’ Market. Berry Farm paid an upfront fee of $200 to present its products at the market for one week, and the market earns a 20% profit margin on each item sold, but Berry Farm is responsible for any items that remain unsold at the end of the week. Required: The market was able to sell 80 boxes of strawberries to customers. How much revenue should Berry Farm recognize with respect to this transaction?
Native Wood Products Ltd sells hand-made coffee tables. The shop owner has divided sales into two categories according to the type of wood used in the tables, as follows: Product type Kahikatea Rimu Sales price $2,000 $1,200 Costs $1,200 $520 Sales commission $100 $60 Seventy percent (70%) of the shop's sales are rimu tables. The shop's annual fixed costs are $161,000. Required: Calculate the unit contribution margin for each product type.
Sunland provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation (straight-line) Advertising $1,400 per month $150 per month Insurance $2.300 per month Weed and feed materials $20 per lawn Direct labor Fuel $12 per lawn $3 per lawn Sunland charges $70 per treatment for the average single-family lawn. For the month ended July 31, 2022, the company had total sales of $9,100. Show Transcribed Text C ง Prepare a CVP income statement for the month ended July 31, 2022. SUNLAND CVP Income Statement For the Month Ended July 31, 2022 Fixed Costs Variable Costs Cost of Goods Sold Contribution Margin Sales Selling Expenses Gross Profit Administrative Expenses Net Income/(Loss) $ Total $ $ с Per Unit Percent of Sales % % % Attempts: 0 of 3 used Submit Answer
Native Wood Products Ltd sells hand-made coffee tables. The shop owner has divided sales into two categories according to the type of wood used in the tables, as follows: Product type Kahikatea Rimu Sales price $2,000 $1,200 Costs $1,200 $520 Sales commission $100 $60 Seventy percent (70%) of the shop's sales are rimu tables. The shop's annual fixed costs are $161,000. Calculate the weighted average contribution margin, assuming the sales mix stays the same.
(b) Determine the company's break-even point in (1) number of lawns serviced per month and (2) sales dollars. (1) Break-even point in lawns (2) Break-even point in dollars $
Cullumber provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation (straight-line) Advertising Insurance $1,400 per month $300 per month $3,130 per month Weed and feed materials $14 per lawn Direct labor Fuel $12 per lawn $2 per lawn Cullumber charges $70 per treatment for the average single-family lawn. For the month ended July 31, 2027, the company had total sales of $8,400. (a) Prepare a CVP income statement for the month ended July 31, 2027. CULLUMBER $ Total CVP Income Statement $ $ Per Unit Percent of Sales
Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical Glasses currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager’s annual salary of $60,000 and benefits of $12,000. The wholesale cost of the sunglasses to the company is $10 a pair. Q.If the store’s hourly employees agreed to a 15% sales-commission-only pay structure, instead of their hourly pay, how many sunglasses would Classical Glasses need to sell to earn an operating income of $5,300?

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