QUESTION 3 [13 MARKS] You are the manager of anewly established coffee shop in Gaborone calledGabz Coffee Mart.The shop sells specialty coffeedrinks, pastries, and sandwiches. It has fixed costs (rent, salaries, utilities) of 24,000 per month. Thevariable cost per coffee drink (including coffeebeans, milk, and cups) is P8 and the selling price percoffee drink is P16. Requireda) Explain theimportance of break-even analysis for Gabz CoffeeMarts decision-making process. (3 marks)b)Calculate the number of coffee drinks Gabz CoffeeMart needs to sell to reach the break-evenpoint. (3marks)c) How many units of coffee should the shopsell to realize a profit of P8,000.00? (3 marks)d)Calculate the new breakeven quantity if fixed costsincreased to P30,000 while selling priceincreased by25% and variable cost increased by 50% (4 marks)

Break-even analysis is a pivotal tool in the decision-making arsenal of any business, particularly…

Answered: QUESTION 3 [13 MARKS] You are the…

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 7 (Breakeven Analysis). You decided to sell Only coffee using Nespresso machine during Ramadan The Nespresso Machine Cost is 3,000 SAR Every cup of coffee required one brown sugar that cost 0.5 SAR, one disposable cup costs 1.5 SAR, and one coffee capsule costs 3 SAR If you sell one coffee for 10 SAR Option 2 Option 1 No Employee Sales quantity = 1500 per month Selling Price 10 SAR per coffee One more Employee and his salary is 4000 Expected sales quantity = 2500 per month Selling Price 10 SAR per coffee What is the breakeven quantity? What is the breakeven quantity? What is the profit? What is the profit? Which option is better?
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Rock Solld concrete manufacturers supply cement mixture directly to both the construction Industry and building supply retailers located throughout the country. The company has three machines each with a 100% capacity (60 hours) of 40 tons per week. Due to electricity supply concerns, the machines have only been able to operate at 75% capacity. One ton of cement mixture requires 400 kg of Product M and 600 kg of Product N. Ignore any wastage. Product M is purchased at R80/kg and Product N at R25/kg. Each machine requires five operators. Assume four (4) weeks per month. All materials purchased are used in the mix of cement and all cement is sold in the month it is manufactured. The cement plant takes up 90% of the total floor space. The following is an extract of some of the transactions for the month: NO 1 2 3 4 5 6 TRANSACTION Purchase the required quantity of Product M for the month. Purchase the required quantity of Product N for the month. The machine operators earn R2 000 each per…
EC 3 Question 3 Hometown Bakery sells three types of doughnuts: glazed, jelly, and cake. The following table shows the sales price and variable costs for each type. The bakery incurs $331,000 a year in fixed expenses. Assume that it sells 3 glazed doughnuts for every 1 jelly doughnut and every 1 cake doughnut. DOUGHNUT TYPE SALES PRICE VARIABLE COST Glazed $0.40 $0.29 Jelly $0.52 $0.49 Cake $0.47 $0.29 (a) How many doughnuts of each type will be sold at the breakeven point? (Round intermediate calculations and final answers for the number of doughnuts to the nearest whole, e.g. 5,275.) Jelly doughnuts Cake doughnuts Glazed doughnuts b. What amount of revenue would need to be generated by each type of doughnut for the company to earn $74,100 in operating income?
QUESTION 8 Grass is Greener, Inc., plans to charge its customers by the hour and to work 350 hours at $16 per hour. It expects its variable costs to be $6 per hour and fixed costs to be $600. Calculate the number of hours needed to earn $1,800 in operating income? (Round to the nearest hour)
H5. Account
Problem 8-44 (Algo) Cost Estimation; High-Low Method [LO 8-3] Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the furnace. Because of prevailing low temperatures, the furnace is used every month of the year (though less in the summer months and very little in August). Everything else in the shop runs on electricity, and electricity use is fairly constant throughout the year. For a year, Horizon has been recording the average daily temperature and the cost of its monthly utility bills for natural gas and electricity. Required: Use the high-low method to estimate utility cost for the upcoming months of January and February. The forecast for January is a near record average temperature of 5°F; temperatures in February are expected to average 40°F.
Engineering Economics Please answer a,b, and c Thank you!
QUESTION 1 Daffodils Florist bought 50 tulips at RM8 each and 20 lilies at RM12 each. The owner wanted a net profit of 18% based on cost and operating expenses of 10% based on the cost. a) Find the selling price for each tulip and lily. b) Find the gross profit for all flowers. c) Find the breakeven price for a tulip. d) Find the maximum percentage of markdown that can be offered without incurring any loss for tulips.

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