Rosemary is planning to make fancy multi-tiered wedding cakes for the next wedding season. To make thecakes, she must invest $742 in some special baking pans and tools. To get started, she needs to spend$2,130 to advertise in the newspaper. She estimates that supplies and materials for each cake will cost $56.She is planning to set the price for each cake at $561.a.) Calculate the contribution margin.b.) Calculate the contribution rate.(A percentage correct to 2 decimal places.)c.) Calculate the break-even point in units.(Round up to the next whole unit.)d.) Calculate the break-even point in sales dollars.(Use the rounded number of units.)

The contribution Margin is calculated as difference between sales and variable cost. The break even…

Answered: Rosemary is planning to make fancy…

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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You are thinking of buying a van that will be used only for business. The cost of the van is estimated at $39,145. You would spend an additional $2,725 to have the van painted. In addition, you want the back seat of the van removed so that she will have lots of room to transport your mixer inventory as well as your catering supplies. The cost of taking out the back seat and installing shelving units is estimated at $1,330. You expect the van to last about 5 years, and you expect to drive it for 200,000 miles. The annual cost of vehicle insurance will be $2,500. You estimate that at the end of the 5-year useful life the van will sell for $7,200. Assume that you will buy the van on August 15, 2021, and it will be ready for use on September 1, 2021. You are concerned about the impact of the van’s cost on your income statement and balance sheet. You will need to calculate the van’s depreciation. The cost of the van total is: $43,200(van amount+paint+modifications) Required part C Prepare…
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The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost $ 1,450,000 Estimated development time 9 months Pilot testing $ 200,000 Ramp-up cost $ 400,000 Marketing and support cost $ 150,000 per year Sales and production volume 60,000 per year Unit production cost $ 100 Unit price $ 225 Interest rate 8 % Tuff Wheels also has provided the project plan shown below. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created. Assume all cash flows occur at the end…
please answer all part
Alice needs 8 1/4 teaspoons of butter to bake a cake. She has a stick of butter (that is 4.5 tablespoons) left from her previous recipe. If a stick of butter cost 33, how much does she need to buy the remaining butter?
A nonprofit decides to provide free food for the homeless in Thanksgiving holidays. The manager wants to write a proposal to raise money from their donors. Assume that the project requires a fixed cost of $5,000 for staff and equipment. The variable cost such as utensils and food is $5 per person served. Based on the manager's experience, the manager estimates there will be 200 homeless people to serve. What is the price per person that the manager should put into his/her proposal? a.$5 b.$30 c.$25 d.$5,000
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Don is using the floor plans for his new home to help him purchas base molding for the place where the walls meet the floor. The plans are drawn using a scale in which 1/3 inch represents 1 foot. He measures the walls on the floor plan with a ruler and finds they total 24 inches. If the molding costs $3.12 per foot, how much will Don spend on molding?
(Consider This) Mason, a professional house painter, needs his tax return prepared; in which situation below would he choose to hire Madison, the CPA, rather than sacrifice time (and income) from house painting? The CPA can prepare the tax return in 2 hours and would charge $50 per hour, Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. The CPA can prepare the tax return in 10 hours and would charge $50 per hour, Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. The CPA can prepare the tax return in 2 hours and charge $100 per hour; Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. Mason would not hire Madison in any of these situations described.
Option 1: He needs to rent a kiosk cart in the mall which will cost $600 a month. In addition, there are marketing costs for signage and business cards, which have an initial cost of $1,200. Zach will also need to create a website, Instagram page and Facebook ads that will cost him $200 a month. To start the business, his tools would cost $500. The total repairs would include a flat rate of $30 for an assessment and another $100 to fix the phone. The supplies to complete each phone would cost $40. Option 2: Zach needs a way to source old phones from people who no longer need them. He would pay $50 for a used phone in decent condition and then refurbish it for $40. He would subsequently sell the device for $200. Zach would no longer need to set up a kiosk in the mall, but rather manage everything online. This means that he would need to create a website, Instagram page and Facebook ads which would cost him $200 a month. He would also need to spend $500 on tools to begin. Based on the…
Problem:Ana and Maria decide to open a bagel shop. When they do the calculation, they found out that if they buy from the local bakery they will need airtight containers at a fixed cost of P5000 annually. They can buy the bagels for P2 each. If they make the bagels in-house they will need a small kitchen at a fixed cost of P5500 annually. It will cost them $1 per bagel to make. Question: 1. How many bagels do they need to sell to have? Show your solution thank you!
Chelsea runs a factory that makes DVD players. Each S100 takes 9 ounces of plastic and 2 ounces of metal. Each D200 requires 6 ounces of plastic and 6 ounces of metal. The factory has 396 ounces of plastic, 312 ounces of metal available, with a maximum of 24 S100 that can be built each week. If each S100 generates $16 in profit, and each D200 generates $8, how many of each of the DVD players should Chelsea have the factory make each week to make the most profit? S100: D200: Best profit:

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