Stephanie's Bridal Shoppe sells wedding dresses. The average selling Price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000. How many dresses are sold when operating income is zero?
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Q: The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
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A: Answer: Face cream must not be processed further because costs increase more than revenue.
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Q: The following information applies to the questions displayed below.] The Fashion Shoe Company…
A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
Q: The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that…
A:
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- Lowes Farm Supply paid $73 for a large bag of fertilizer. Expenses are 13% of cost and the profit is 21% of cost. Round the answers to the nearest cent if necessary. 1) What is the regular selling price? 2) To help clear inventory, the fertilizer was sold at break-even during a sale. What is the break-even selling price?Coronado Makeup produces face cream. Each bottle of face cream costs $12 to produce and can be sold for $13. The bottles can be sold as is, or processed further into sunscreen at a cost of $14 each. Coronado Makeup could sell the sunscreen bottles for $23 each. What should Coronado Makeup do? Face cream must be further processed because it increases operating income by $1 each. O Face cream must not be further processed because incremental revenue is less than incremental processing costs. O Face cream must be further processed because its operating income is $9 each. Face cream must not be further processed because it decreases operating income by $3 each.Andal Golf Emporium sells golf balls for $30.95 per dozen. The emporium's overhead expenses are 47% of cost and Christian, the owner, requires a profit of 28% of cost. Do not include the $ sign in your answer(s). Do not include the, to indicate thousands in your answer(s) (a) For how much (per dozen) does Andal Golf Emporium buy the golf balls? (b) What is the break-even price? (C) What is the highest rate of markdown at which the Emporium will break-even on a dozen golf balls? A percentage correct to 2 decimal places. Do not include the % sign in your answer. (d) What is the lowest price the Emporium can charge (per dozen) without making an absolute loss? (e) What is the highest rate of markdown possible without making an absolute loss?
- Austin Avenue Clothiers pays $52 each for sports coats and has a fixed monthly cost of $780. The store sells the coats for $71 each. (a) What is the linear cost-volume function C(x)? C(x) = (b) What is the linear revenue function R(x)? R(x) = (c) What is the break-even number of coats? (Round your answer up to the nearest whole number.)Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $600 and the variable cost per cup of coffee served is $0.44. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Cups of Coffee Served in a Week 2,200 Fixed cost Variable cost Total cost Average cost per cup of coffee served S 2,100 0 S 2,300Rolf's Golf store sells golf balls for $27 per dozen. The store's overhead expenses are 26% of cost and the owners require a profit of 18% of cost. a. How much does Rolf's Golf store buy the golf balls for? _____per dozen b. What is the price needed to cover all the costs and expenses? c. What is the highest rate of markdown at which the store will still break even? d. What markdown rate would price the golf balls at cost?
- Sleepy Time is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Sleepy Time fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price per unit $ 3,250.00 Per-unit variable costs: Invoice cost 2,468.80 Sales commissions 331.20 Total per-unit variable costs $ 2,800.00 Total annual fixed costs: Advertising $ 236,500 Rent 178,500 Salaries 386,500 Total annual fixed costs $ 801,500 If 4,250 bed frames were sold, Sleepy Time's operating income (πB) would be: (Do not round intermediate calculations.)sanjuThe following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company’s many outlets: Per Pair of Shoes Selling price $ 25.00 Variable expenses: Invoice cost $ 11.50 Sales commission 3.50 Total variable expenses $ 15.00 Annual Fixed expenses: Advertising $ 32,000 Rent 17,000 Salaries 110,000 Total fixed expenses $ 159,000 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $35,400 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)
- AlpeshKate operates a small store manufacturing and selling 250 book cases per month. Kate's monthly variable and fixed costs are $2400 and $700 respectively. Suppose Kate's monthly fixed costs rise to $1,400, which of the following statements is correct? Group of answer choices Average Total Costs would increase Marginal Costs would increase Average Variable Costs would Increase None of the aboveHome Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,060 each. The average cost of a television from the manufacturer is $1,330. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Costs Cost Formula Selling: Advertising $ 1,090 per month Delivery of televisions $ 50 per television sold Sales salaries and commissions $ 3,040 per month, plus 5% of sales Utilities $ 404 per month Depreciation of sales facilities $ 3,160 per month Administrative: Executive salaries $ 11,500 per month Depreciation of office equipment $ 805 per month Clerical $ 1,860 per month, plus $49 per television sold Insurance $ 720 per month During April, the company sold and delivered 219…