Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions. (a) How much is the contribution margin and the contribution rate? (b) How much does the business need to sell to break even? (c) If the business was to spend $23,000 to upgrade their processes, how much does the business need to sell to break even? Sales Fixed cost Total $594,000 variable cost 213,440 Total cost Net income $893,000 807,440 $85,560

Projected financial results for the university's cafeteria for next year are shown. Answer each of the following independent questions. (a) How much is the contribution margin and the contribution rate? (b) How much does the business need to sell to break even? (c) If the business was to spend $23,000 to upgrade their processes, how much does the business need to sell to break even? Sales Fixed cost Total $594,000 variable cost 213,440 Total cost Net income $893,000 807,440 $85,560

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations. Sales (2,500 fruit bowls) Cost of goods sold Manager's salary allocation Rent cost allocation Advertising Commissions (10% of sales) What are the estimated total costs if Jenny's expects to sell 3,000 units next year? A) $86,700 B) $98,700 C) $76,700 D) $88,700 $100,000 45,000 20,000 700 2,000 10,000 E) $84,240
What is the level of sales needed to obtain a 15% ROI of $8,250,000 for a restaurant and cover all the costs? (Condition: the restaurant has two main products, food and beverage) Food generates 75% of total sales and $3,000,000 in food sales with a 34% food cost. Beverage with a CMR of .80. Tax rate is 18% and fixed costs are $500,000 annually.
Using this information below, answer the following question: What is the Net Income required? Total sales amount to $2,000,000 Food generates 75% of total sales Food cost is $500,000 Beverages generated sales of $300,000 with a CMR of 0.85 The gift store generated the remaining sales at a cost of 30% Tax rate is 27% Annual fixed costs total $1,500,000 Group of answer choices $1,080,000 $1,010,000 $1,000,000 $1,090,000
Provide Answer with calculation and explanation
Cabin Creek Company is considering adding a new line of kitchen cabinets. The company's accountant provided the following estimated data for these cabinets: Annual sales Selling price per unit Variable manufacturing costs per unit Variable selling costs per unit Incremental fixed costs per year: 800 units. $ 3,680 $ 1,680 $ 530 $ 493,400 Manufacturing Selling Allocated common costs per year: Manufacturing Selling and administrative $ 73,000 $ 98,000 $ 130,000 If the kitchen cabinets are added as a new product line, the company expects that the contribution margin earned from selling products will decrease by $236,000 per year. Required: 1. What is the annual financial advantage (disadvantage) of adding the new line of kitchen cabinets? 2. What is the lowest selling price per unit that could be charged for the cabinets and still make it economically desirable for th company to add the new product line? Complete this question by entering your answers in the tabs below. Required 1…
The Museum of Natural Science is preparing for its annual appreciation dinner for contributing members. Last year, 500 members attended the dinner. Tickets for the dinner were $20 per attendee. The profit report for last year's dinner follows. (Click the icon to view the profit report.) This year the dinner committee does not want to lose money on the dinner. To help achieve its goal, the committee analyzed last year's costs. Of the $11,000 cost of the dinner, $6,000 were fixed costs and $5,000 were variable costs. Of the $3,000 cost of invitations and paperwork, $2,500 were fixed and $500 were variable. Read the requirements. Requirement 1. Prepare last year's profit report using the contribution margin format. (Use parentheses or a minus sign when entering losses.) Ticket sales Variable cost of dinner Variable invitations and paperwork Contribution margin Fixed cost of dinner Fixed invitations and paperwork Profit (loss) 5000 500 6000 2500 10000 5500 4500 8500 -4000 (...) Requirement…
Lamphere Lawn Care provides lawn and gardening services. The price of the service is fixed at a flat rate for each service, and most costs of providing the service are the same, given the similarity in the lawns and lots. The owner budgets income by estimating two factors that fluctuate with the economy: the contribution margin associated with each service call and the number of customers who will request lawn service. Looking at next year, the owner develops the following estimates of contribution margin (price less variable cost of the service, including labor) and the estimated number of service calls. Although the owner understands that it is not strictly true, the owner assumes that the cost of fuel and the number of customers are independent. Contribution Margin per Service Call Scenario Excellent Fair Poor (Price - $ 50 Variable cost) Service Calls 40 12 Number of 10,950 8,500 6,200 In addition to the variable costs of service, the owner estimates that other costs are $63,000…
If Anna Cullumber, the company’s president, is successful in increasing sales revenue by 5%, by what percent will the company’s operating income increase?
i need the answer quickly