Skippy's Scooters plans to sell a standard scooter for $250 and a chrome scooter for $300. Skippy's purchases the standard scooter for $125 and the chrome scooter for $150. Smartie expects tosell one standard scooter for every three chrome scooters. Skippy's monthly fixed costs are $158,125.Requirements1. How many of each type of scooter must Skippy's Scooters sell each month to break even?2. How many of each type of scooter must Skippy's Scooters sell each month to earn $218,500?Requirement 1. How many of each type of scooter must Skippy's Scooters sell each month to break even?Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products-total scooters to be sold. (Enter a "0" for any zero balances. Entercurrency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.)Required sales in units++)/

BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Answered: Skippy's Scooters plans to sell a…

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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Bramble Corp. manufactures and sells solar chargers for $60 each. Variable costs are $30 per unit, and fixed costs total $120000. How hany solar chargers must Bramble sell to earn a net income of $300000? O 10000. O 14000. O 18000. O 16000.
Please explain your answer
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $69 per person as a one-day entrance fee. Variable costs per person are $24 and a fixed cost amount to $236,300 per month. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park cuts it ticket price to $40 per person. Net Sales revenue per unit Contribution margin / Net sales revenue = Contribution margin ratio (%) (Fixed Costs 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units). + Variable costs per unit = Unit Contribution margin (Fixed Costs + Target Profit) / (Contribution Margin per unit) + + Target Profit) 1 = = 1 / (Contribution Margin ratio %) = = Required Sales in Units Required Sales in Dollars
In need of an answer for this please. Thank you!
Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $10.50 and the large kites would be $23.50. The variable cost per unit is $5.05 and $11.10, respectively. Jill, the owner, feels that she can sell 2,600 of the small kites and 1,700 of the large kites each year. The fixed costs would be $2,100 a year and the depreciation expense is $900. The tax rate is 21 percent. What is the annual operating cash flow?
Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other. Its discount rate is 10.8%. The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown below, which should it choose? (Note: dollar amounts are in thousands.) Model Old Reliable Short and Sweet Year 0 - $199 - $98 Year 1 - $3.9 -$2.1 Year 2 - $3.9 -$2.1 Year 3 -$3.9 -$2.1 Year 4 -$3.9 -$2.1 Year 5 -$3.9 Year 6 - $3.9 Year 7 - $3.9 Based on the costs of each model, which should it choose? (Select the best choice below.) OA. Gateway Tours should choose Short and Sweet because the NPV of its costs is smaller. B. Gateway Tours should choose Old Reliable because it lasts longer. OC. Gateway Tours should choose Short and Sweet because the equivalent annual annuity of its costs is smaller. OD. Gateway Tours should choose Old Reliable because the equivalent annual annuity of its costs is smaller.
Hawk Homes, Ic., makes one type of birdhouse that it sells for $30.00 each. Its variable cost is $13.50 per house, and its fixed costs total $14,239.50 per year. Hawk currently has the capacity to produce up to 2,800 birdhouses per year, so its relevant range is 0 to 2,800 houses. Required: 1. Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses this year. 2. Without any calculations, determine Hawk's total contribution margin if the company breaks even. 3. Calculate Hawk's contribution margin per unit and its contribution margin ratio. 4. Calculate Hawk's break-even point in number of units and in sales revenue. 5. Suppose Hawk wants to earn $21,000 this year. Determine how many birdhouses it must sell to generate this amount of profit. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a contribution margin income statement for Hawk assuming it sells 1,110 birdhouses…
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Desk company has a product that it currently sells in the market for $80 per unit. Does develop a new feature that if added to the 16 product will allow desk to receive a price of $95 per unit.
Rapido Quadcopters plans to sella standard quadoopter (toy drone) for $54 and a delue quadcopter for $74. Rapido purchases the standard quadcopter for $44 and the deluse quadcopter for $54. Management expects to sel wo dekove quadcopters for every three standard quadcopters The company's monthly foxed expenses are $11,200. How many of each type of quadcopter must Rapido sell monthly to breakeven? To eam $7,7007 First identity the formula to compute the sales in units at various levels of operating income using the contribubon margin approach (Abbreviations used Avg. average, and CM e contribution margin) Fied expenses Operating income Weighed-avg CM per unit Breakeven sales in units Next compute the weighted average contribution margin per unit. First identity the formula labols, then complete the calculations step by step Standard Sale price per unt Deduct Varable expense per unit Contribution margin per unit Sales mix in unts Contribution margin Weighted average contribution margin…
Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other. Its discount rate is 11.0%. The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown below, which should it choose? (Note: dollar amounts are in thousands.) Model Old Reliable Short and Sweet Year 0 -$200 -$100 Year 1 -$4.0 -$2.0 Year 2 -$4.0 -$2.0 Year 3 -$4.0 -$2.0 Year 4 -$4.0 -$2.0 Based on the costs of each model, which should it choose? (Select the best choice below) OA. Gateway Tours should choose Short and Sweet because the NPV of its costs is smaller. OB. Gateway Tours should choose Short and Sweet because the equivalent annual annuity of its costs is smaller. OC. Gateway Tours should choose Old Reliable because the equivalent annual annuity of its costs is smaller. D. Gateway Tours should choose Old Reliable because it lasts longer. Year 5 -$4.0 Year 6 -$4.0 Year 7 -$4.0
Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $55. Rally purchases the standard quadcopter for $25 and the deluxe quadcopter for $30. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $23,100. How many of each type of quadcopter must Rally sell monthly to breakeven? To earn $15,400? First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) ( Operating income Fixed expenses >/Weighed-avg. CM per unit Breakeven sales in units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Standard Deluxe Total Sale price per unit Deduct Variable expense per unit 45 35 55 30 Contribution margin per unit Sales mix in units Contribution…

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