Problem 1 Old Burnside Ice Company supplements its ice business by producing beer. There are four people directly involved in beer production: two brewmasters, an assistant and a bottler. In addition, a buyer and a marketer/seller work full time on beer, and four delivery people work 75% of the time delivering beer and the balance of the time delivering ice. If Old Burnsides beer sales were $120,000 for October, the sales per person for October in the Brewery value stream are:
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- Team Spirit Calendars imprints calendars with college names. The company has fixed expenses of $1,065,000 each month plus variable expenses of $3.50 per carton of calendars. Of the variable expense, 71% is cost of goods sold, while the remaining 29% relates to variable operating expenses. The company sells each carton of calendars for $13.50. Read the requirements. Requirement 1. Compute the number of cartons of calendars that Team Spirit Calendars must sell each month to breakeven. Begin by determining the basic income statement equation. Variable expenses Sales revenue ... The breakeven sales is 106,500 cartons. Fixed expenses Using the basic income statement equation you determined above solve for the number of cartons to break even. = Operating income Requirement 2. Compute the dollar amount of monthly sales Team Spirit Calendars needs in order to earn $304,000 in operating income. Begin by determining the formula. Fixed expenses + Target operating income ( (Round the contribution…Ay 1. Please show me the step by step and the formula Question 1: Keri Weinberg earns both $10/hour, $10 for every sale of Product A, and $14 for every sale of Product B. During the most recent week, she worked 54 hours and sold 26 units of Product A and 41 units of Product B. Question 2: Samuel Worthy earns both $7.25/hour and a 10% commission on all sales. During the most recent week, he worked 42 hours and made total sales of $11,000.Sales mix, three products. The Kenosha Company has three product lines of beer mugs—A, B, and C—with contribution margins of $5, $4, and $3, respectively. The president foresees sales of 175,000 units in the coming period, consisting of 25,000 units of A, 100,000 units of B, and 50,000 units of C. The company’s fixed costs for the period are $351,000. Q. Comparing the breakeven points in requirements 1 and 3, is it always better for a company to choose the sales mix that yields the lower breakeven point? Explain.
- Portland Brewing Company is a small craft brewer that produces five varieties of beer. The beers sell for $8 per six-pack, and the company currently sells 10,000 six-packs per month. The company is considering producing a seasonal beer that will be sold in October, November, and December. The company estimates that at $6 per six-pack, the company will sell 2,000 six-packs. At $7 per six-pack, sales will be 1,000 six-packs. The company also estimates that sales of the seasonal beer will eat into sales of its standard items. Specifically, for every 500 six-packs of the seasonal beer that are sold, 200 six-packs of the standard varieties will not be sold. The variable production costs of all beers is $1.20 per six-pack. Required Calculate the incremental profit associated with selling the seasonal beer at $6 per six-pack. $4,160 $3,800 $3,840 $3,480 $3,080Required information [The following information applies to the questions displayed below.] C. W. McCall sells a goldplated souvenir mug; McCall expects to sell 1,600 units for $45 each to earn a $25 contribution margin per unit. Janice McCall, president, expects the year's total market to be 32,000 units. For the year just completed, the local college won the national hockey championship, and as a result, the total actual market was 100,000 units. C. W. McCall sold 3,000 units and calculates sales variances using contribution margin. What is the firm's market share variance? Market share varianceMarwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,600 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 961 per month Sales salaries and commissions $ 4,799 per month, plus 4% of sales Delivery of pianos to customers $ 60 per piano sold Utilities $ 647 per month Depreciation of sales facilities $ 4,956 per month Administrative: Executive salaries $ 13,422 per month Insurance $ 702 per month Clerical $ 2,456 per month, plus $37 per piano sold Depreciation of office equipment $ 879 per month During August, Marwick’s Pianos, Inc., sold and delivered 56 pianos. Required: 1. Prepare a traditional format income statement for August.
- Consider the following revenue and cost data for Shannon's Brewery in Keller, Texas. Shannon's sells 35% of its craft beer production through its own on- premise taproom. The bulk of its sales (65%) are made off-premise via various retail outlets including supermarkets, bars, and restaurants. 40% of its of sales (on- premise and off-premise) consists of package sales (bottles and cans). Of this 40%, beer sold in cans accounts for 80% with sales of bottled beer accounting for the remaining 20%. Finally, the bulk of Shannon's craft beer sales (60%) occurs in kegs (31 gallons per keg). Assume that overall sales for FY 2018 are expected to be $1,007,886. Given the proportions of beer sold in kegs, bottles, and cans, what will be the predicted dollar sales of beer sold in kegs? Round your answer to the nearest one dollar.Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10.10 from an outside vendor. Division A needs 11,100 lamps for the coming year. Division B has the capacity to manufacture 49,600 lamps annually. Sales to outside customers are estimated at 38,500 lamps for the next year. Reading lamps are sold at $12.09 each. Variable costs are $6.87 per lamp and include $1.41 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $75,900. Consider the following independent situations. What should be the minimum transfer price accepted by Division B for the 11,100 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e.g. 15.25.) Per unit Minimum transfer price accepted by Division B $_ Maximum transfer…Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,502 per unit and then sells them to retail customers for an average price of $2,400 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Cost Formula $944 per month $4,810 per month, plus 5% of sales $61 per piano sold $638 per month $4,920 per month Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Incorporated, sold and delivered 64 pianos. $13,534 per month $685 per month $2,492 per month, plus $39 per piano sold $945 per month Required: 1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution…
- Rachael's Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs eight people; one is a manager paid a salary plus a bonus equal to 4 percent of sales. Other employees, two cooks, one dishwasher, and four servers, are paid salaries. Each manager is budgeted $3,000 per month for advertising costs. Required Classify each of the following costs incurred by Rachael's Restaurant as fixed, variable, or mixed: a. Advertising costs relative to the number of customers for a particular restaurant. Fixed cost b. Rental costs relative to the number of restaurants. Variable cost c. Cooks' salaries at a particular location relative to the number of customers. Fixed cost d. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers. e. Manager's compensation relative to the number of customers. Variable cost Mixed cost f. Servers' salaries relative to the number of restaurants. Variable costDetermine the number ofsalespeople Wheels needs if it has 1,000 bicycle shopaccounts that need to be called on four times peryear. Each sales call lasts approximately 2.5 hours, andeach sales rep has approximately 1,250 hours per yearto devote to customers.Current Attempt in Progress You have been asked to help the local commercial radio station prepare its business plan for the upcoming year. The radio station operates for 18 hours a day (6 a.m. to midnight) seven days a week, all year. It broadcasts on average 15 minutes of on-air advertising per hour. To sell the advertising time, the station uses commissioned sales staff who are paid a base salary plus commission that varies according to the volume of sales. The station manager asks you to calculate how many hours of advertising it would need to sell in order to break even. (a) Select the fixed costs and the variable costs. Rent • Utilities (heat, light, water) Property and business taxes Management salaries and benefits Marketing costs for the station • Sales force base salaries Costs of production of on-air commercial • Advertising sales commission