Muffin Unit Costs Direct Material $ $ 0.20 Direct Labor 0.80 Other Variable Costs 0.40 Fixed Costs 0.60 Total Cost Per Unit $ 2.00 Currently Madame J's bagel shop bakes its own muffins. The pastry shop around the corner has offered to take over muffin production. Given Madame J's current per-muffin costs above, what's the most it should pay the pastry shop per-muffin? $0.39 $0.59 $0.79 $0.99 $1.39 $1.99 %24

Muffin Unit Costs Direct Material $ $ 0.20 Direct Labor 0.80 Other Variable Costs 0.40 Fixed Costs 0.60 Total Cost Per Unit $ 2.00 Currently Madame J's bagel shop bakes its own muffins. The pastry shop around the corner has offered to take over muffin production. Given Madame J's current per-muffin costs above, what's the most it should pay the pastry shop per-muffin? $0.39 $0.59 $0.79 $0.99 $1.39 $1.99 %24

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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Rolf's Golf store sells golf balls for $27 per dozen. The store's overhead expenses are 26% of cost and the owners require a profit of 18% of cost. a. How much does Rolf's Golf store buy the golf balls for? _____per dozen b. What is the price needed to cover all the costs and expenses? c. What is the highest rate of markdown at which the store will still break even? d. What markdown rate would price the golf balls at cost?
Elizabeth and William are considering offering a doggy day-care service. After some research, they found several pet day-care facilities in their area, but they were expensive! Further, the facilities were sterile and didn't provide a "homey" or fun environment for pets. Elizabeth and William felt they could easily fix these shortcomings. Elizabeth's home would be the location for their business, since it already has a fenced-in yard and is located two blocks from a dog park. Estimated costs for building an outdoor shelter, plus other licensing and business start-up costs, are as follows. Shelter (depreciated over 7 years) Licensing and other annual costs Hourly wage for hired labor; planned for only 200 hours per year Variable costs for food Estimated volume of dogs per day (open for business 5 days per week, 50 weeks per year; average length of stay 8 hours per day) $600 per year $700 per year $16 per hour $16 per day per dog. 24 per day
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.90 Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person $ 2.60 Delivery vehicle $ 680 $ 2.00 Equipment depreciation $ 440 Rent $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November were as follows: Actual Results Pizzas 1,810 Deliveries 170 Revenue $ 36,800 Pizza ingredients $ 8,110 Kitchen staff $ 5,950 Utilities $ 910 Delivery person $…
You own a firewood business that involves chopping down trees, sawing them into lumber and transporting to the market. You can cut the trees into 2X4s where they are cut down or after being transported to the market. Cutting down trees Sawing trees into lumber Transporting trees to $65 per ton the market $38 per ton $110 per ton Transporting 2X4s to $45 per ton the market a. Where should you locate the sawmill to minimize costs? Why? b. Where should you locate the sawmill if the price of lumber is $190 per ton? $215?
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Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below: Recliner Sofa Love Seat Selling price per unit $ 1,158 $ 1,950 $ 1,400 Variable cost per unit $ 750 $ 1,300 $ 1,000 Upholstery labor-hours per unit 6 hours 13 hours 5 hours Required: Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $45 per hour. The management of…
Homework help. Chapter 25, number 5. Need help filling in the blanks. Thank you!
Rolf's Golf store sells golf balls for 27 per dozen. The store's overhead expenses are 28% of cost and the owners require a profit of 22% of cost. a. How much does Rolf's Golf store buy the golf balls for? b. What is the price needed to cover all the costs and expenses? c. What is the highest rate of markdown at which the store will still break even?
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Pizza ingredients Fixed Cost Cost per per Month Pizza $ 4.50 $ 5,930 Cost per Delivery Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 620 $640 $ 408 $1,890 $740 $0.40 $ 3.20 $ 0.20 $ 1.60 In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below. Actual Results Pizzas Deliveries Revenue 1,690 210 Kitchen staff Delivery person $27,600 Pizza ingredients $ 7,390 $ 5,870 Utilities. $ 890 $ 672 $ 988 $ 408 $ 1,890 $ 796 Delivery vehicle Equipment depreciation Rent Miscellaneous…
Xander's Muffins is trying to decide whether or not to continue a particular muffin flavour. The information shown is available for Xander's different muffin ranges. If the range is dropped, the business will still have to pay the direct fixed costs and the allocated common fixed costs. Raspberry white Blueberry Banana walnut chocolate Sales volume Sales price 500 units 500 units 500 units $4 per unit $5 per unit $4.50 per unit Variable costs $1.50 per unit $1.75 per unit $1.25 per unit Direct fixed costs 1,000 1,000 1,000 Allocated common 500 1500 500 fixed costs Net income -250 -875 125 What will be the net profit if the business drops the Raspberry and white chocolate muffins?