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- Lantz Family Restaurant operates in a suburb of a major city. Recently, the managers at Lantz have noticed an increase in the use of delivery apps such as Grubhub and DoorDash by their customers. The average fee paid by Lantz for this service currently is $6 per delivery. The managers are considering starting their own delivery service that they estimate would attract about 75 percent of the current deliveries. (Not all customers will switch, even though the service would be free, because of the convenience of the app, habit, and other factors.) Estimates by the financial consultant to Lantz are that the cost of the service, if provided by Lantz, would be $3.90 per delivery and an incremental $1,297 per month fixed costs. In an average month, 800 orders Lantz receives are to be delivered. Required: a. Prepare a schedule that shows the differential costs. b. Should Lantz Family Restaurant provide their own delivery service or continue to rely on other firms?Ih order to attract investors and borrow on attractive terms, a company would use in times when inventory costs are rising. A) average costing B) specific-identification costing C) FIFO O D) LIFO#becausesneaker... CH 21 HW--MJR v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&take AssignmentSes Custom Order eBook Show Me How Target Profit Outdoors Company sells a product for $195 per unit. The variable cost is $100 per unit, and fixed costs are $332,500. Determine (a) the break-even point in sales units and (b) the sales units required to achieve a target profit of $63,175. a. Break-even point in sales units b. Break-even point in sales units required to achieve a target profit of $63,175 units units
- Need help with question B sales vale at split off point. Please show how you got the numbers. I really need help calculating cost per liter for each product. ThanksG http Chapter Review My... Sales price Contribution margin ratio Fixed costs Tra.. Vernon Company reported the following data regarding the product it sells: a. Break-even point in dollars a. Break-even point in units b. Sales in dollars b. Sales in units c. Break-even point in dollars c. Break-even point in units $60 Man... $ 10% $216,000 M Questio... Required Use the contribution margin ratio approach and consider each requirement separately. b Ans... 2,160,000 36,000 Bes... Saved a. What is the break-even point in dollars? In units? b. To obtain a profit of $54,000, what must the sales be in dollars? In units? c. If the sales price increases to $72 and variable costs do not change, what is the new break-even point in dollars? In units? US fron.See questions 1 - 3 in image Question 4: If you were in Dell Havasi's position, would you accept or reject the new product? Question 5: Would the new line increase or decrease the company's overall ROI?
- of 2 2. Change all of the numbers in the data area of your worksheet so that it looks like this: 1 2 3 4 5 6 7 Chapter 6: Applying Excel A Data Unit sales Selling price per unit Variable expenses per unit Fixed expenses Break-even in dollar sales If your formulas are correct, you should get the correct answers to the following questions. (a) What is the break-even in dollar sales? ✔ Answer is complete and correct. (b) What is the margin of safety percentage? Margin of safety percentage 6 7 Degree of operating leverage ✔ Answer is complete and correct. 20✔ % ✔ Answer is complete and correct. 400,000✔ (c) What is the degree of operating leverage? (Round your answer to 2 decimal places.) Percentage increase in net operating income Data Unit sales 1 Chapter 6: Applying Excel 2 3 4 5 Selling price per unit $ $ $ 240,000 A B 5.00✔ 3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales…part 2 If Oriole World could avoid all variable SG&A costs on this order, what would be the minimum selling price for the special order?sde • The most likely strategy to reduce the break-even point should be to 1. Increase fixed costs 2. Decrease selling price 3. Increase variable costs 4. Increase selling price O 1 O 2 O 3 O 4 Question 20 • In break-even analysis, which of the following is not an assumption over the relevant range 1. Unit selling price are constant 2. Unit variable costs are constant 3. Total costs are constant 4. Total fixed costs are constant O 1 O 2 O 3 04 MacBook Pro
- 00 Company A is currently manufacturing a component but is considering buying the component from a reliable supplier. Which of the costs are relevant to this decision? Select one: O a. direct material costs O b. fixed costs avoidable fixed costs C. O d. purchase price from supplier O e. all of these f. a,c and d Clear my choice Next page s page 0 抄 胆 メ 直 0 回 # E ype here to search f5 24 4. # 9. 2 V4 3. 5. 3.Which of the following items will not cause the company's ROA to increase? Multiple Choice O O Reducing costs. Reducing company assets without impacting sales. Increasing company assets. Increasing the selling price per unit. $Unit cost per order of a given size 2. An analysis of selling costs shows: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) nces ? Management may want to consider offering discounts for large orders. ? Small orders are preferable to medium sized orders. 2 Large orders are preferable to medium sized orders. ? Marketing should be focused on small sized orders. raw lill insert Oelete F9 F10 F11 F12 F6
