Problem 22: Cost Behavior Starbucks operates a number of branches in Metro Manila. The fixed monthly expense of a coffee branch is P200,000 and the variable cost per cup of coffee is P20. Cups of Coffee Sold 52,500 50,000 55,000 Fixed Cost Variable cost Total cost Cost per cup of coffee ? Required: Fill in the missing amounts with your estimates of total costs and cost per cup of coffee.

Problem 22: Cost Behavior Starbucks operates a number of branches in Metro Manila. The fixed monthly expense of a coffee branch is P200,000 and the variable cost per cup of coffee is P20. Cups of Coffee Sold 52,500 50,000 55,000 Fixed Cost Variable cost Total cost Cost per cup of coffee ? Required: Fill in the missing amounts with your estimates of total costs and cost per cup of coffee.

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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Question 34 Show all calculations for this problem: Lion Co produced and sold 5.000 units in the month. Below is their financial information: Selling Price: $20 per unit Direct Manufacturing Costs: $5 per unit Fixed Manufacturing Overhead: $20,000 Variable Selling expenses: $3 per unit Fixed Selling expenses: $5,000 Lion Co is trying to determine whether to use a Contribution Margin income statement or an Absorption Costing income statement. What would be the difference between their Contribution Margin and their Gross Profit?
Total Cost Method of Product Pricing Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 3,500 units of cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $ 77 Factory overhead $134,700 Direct labor 35 Selling and administrative expenses 47,300 Factory overhead 23 Selling and administrative expenses 19 Total variable cost per unit $154 Smart Stream desires a profit equal to a 14% return on invested assets of $422,300. a. Determine the total costs and the total cost amount per unit for the production and sale of 3,500 cellular phones. Round the cost per unit to two decimal places. Total cost Total cost amount per unit b. Determine the total cost markup percentage for cellular phones. Round your answer to two decimal places. c. Determine the selling price of cellular phones. Round to the nearest cent. per cellular phone
3. Multiple product companies Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis: Cat food Dog food. Selling Contribution Price Margin $16 $40 $30 (a) The total monthly sales revenue required to break-even is $ (Rounded) (b) The total monthly sales revenue required to earn an operating income of $135,000 is $_ (c) The company's margin of safety at a monthly sales level of $2,500,000 is $_ (d) If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to $
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Problem 1 Xpress Corp. operates a fast food restaurant in San Fernando. Meals cost an average of $36 for which Xpress incurs variable costs of $14.40. Total fixed costs are $29,160. Required: a) Determine break even in units (persons) and sales dollars using the contribution margin technique. b) If the expected revenue is $ 65,000, what is Xpress' margin of safety ratio? c) If Xpress wants to earn a target income of $20,000, calculate the number of meals necessary.
16/ Do not solve it in excel, please.
Question 2: Zeroll Ice Cream company produces and sells premium ice cream cones in Coles supermarkets. The following table shows selling price and cost information of ice cream cones: Price per cone: $ 5.00 Variable cost per cone:Ingredients $1.35Direct labour $0.45Overhead $0.20Fixed cost per month $3,000Required: a. Calculate the breakeven point in units and in dollars. Click or tap here to enter text.b. The company’s general director has determined a target profit of $6,000 for next year. Given the price and cost information above, what are the required sales in units and in dollars for the company to achieve this target? Click or tap here to enter text.c. Calculate Zeroll’s new break-even point (in units and in dollars) for each of the following independent scenarios:  Selling price decreases by $0.50 per cone. Click or tap here to enter text. Fixed costs decrease by $300 per month. Click or tap here to enter text. Variable costs increase by $0.50 per cone Click or tap here to…
The management of Caribbean Juices has provided you with the following data on its Creamy Brand juice mix. Sales revenue $600,000 Unit selling price $10 Contribution margin ratio 40% Fixed cost $200,000What is the unit variable cost? a. $0.40 b. $4 c. $0.60 d. $6
Last month Annie's Homemade sold 5,000 servings of ice cream for $5.00 each. Its variable cost is $1.25 per serving and its total fixed costs were $11,000. Required: 1. What was last month's margin of safety? 2. What was last month's margin of safety percentage? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What was last month's margin of safety? Margin of safety
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