Oriole Cupcakes Co. is selling cupcakes for $10 for a box of one dozen. Oriole has fixed costs equaling $130800 per year, and itsaccounting firm has determined the contribution margin ratio on each box of donuts to be 50%. Oriole is currently averaging monthlysales of 2860 boxes of donuts, and the company has a tax rate of 25%. Based on this information, Oriole Cupcakes has been averagingmonthly net income ofO $2664Ⓒ $2300O $2550O $2529

Net income is the net result of business operations. It is the excess of revenue over expenses.

Answered: Oriole Cupcakes Co. is selling cupcakes…

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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n Chocolove is a chocolate manufacturer with headquarters and a manufacturing facility in Boulder, Colorado. Assume a three-year scenario during which Chocolove's cost of goods increased by $1 per unit each year from $10 to $11 to $12. It priced its goods to achieve a 50% gross profit per unit (.e. 100% markup). In years 1 and 2, Chocolove buys 1,000 units but sells only 700 units. In year 3, Chocolove buys 700 units, sells 1,300. Assume Chocolove follows LIFO. The profit margin in year 2. and the profit margin in year 3 Select one: O a. 50%; >50% O b. 50%; 50%; > 50% 17
A company rents snow skis and transports customers to and from their ski trip at a local ski slope. The trip is priced at $20 per person and has a CM ratio of 40%. The company's fixed expenses are $84,000. Last year, sales were $400,000 and profit was $36,000. How many units need to be sold to break- even, and how many need to be sold to earn a profit of $42,000? Multiple Choice 4,500 and 5,250 6,000 and 8,143 14,000 and 21,000 10 500 and 15 750
Lusk Corporation produces and sells 14,300 units of Product X each month. The selling price of Product X is $25 per unit, and variable expenses are $19 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $72,000 of the $102,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company
Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are$4,000,000 per year. The variable cost of each TV is $2,000, and the TVs are sold for $3,000 each. Thecompany sold 5,000 TVs during the previous year. (In the following requirements, ignore income taxes)Required:Treat each of the requirements as independent situations:a) Calculate the break-even point in units.b) What will the new break-even point be if fixed costs increase by 10 per cent? c) What was the company’s net profit for the previous year? (4 marks)d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for 1,200 more TVs each year. What will the break-even point be if the price is changed?
The manufacturer of Aromello, a new body lotion, sells it directly to retailers who take a 40% margin. The retail price of Aromello is $5 per bottle. Industry sales for Aromello and other products of its type are 25 million units annually; Aromello has 20% of the market. The manufacturer’s fixed costs, including all expenses but advertising, amount to $2 million per year. The annual advertising budget is another $2 million. The raw materials of each bottle of Aromello cost 50 cents, while packaging, bottling, and all other variable costs (including shipping, breakage, insurance…) are another 50 cents. What is the unit margin of Aromello for the manufacturer? What is the break-even volume? What is the current volume of Aromello given its market share? Are they making profit?
GPXVZG300 Corp. is a merchandiser that sells it's product for $36 per unit. Variable expenses are $18 per unit, and fixed expenses total $17,000 annually. (ID#45225) Assume that GPXVZG300 sold 21,600 units last year. The manager wants to increase the sales commission by $0.9 per unit. He thinks that this move, combined with some increase in advertising, would double annual unit sales. Q: By how much could advertising be increased with GPXVZG300's profits remaining unchanged? A: $ 4 of 25 Next > < Prev raw ill MacBook Pro

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