The Eastwood Cake Factory sells chocolate cakes, birthdaydecorated cakes, and specialty cakes. The factory isexperiencing a bottleneck and is trying to determine whichcake is more profitable. Even though the company may haveto limit the orders that it takes, Eastwood is concerned aboutcustomer service and satisfaction.ChocolateBirthdaySpecialtyCakeCakeCakeSales price$20.00$45.00SE0.00Variable cost per cake$5.00$12.00$20.00Hours needed to bake,frast, and decorate1 hour2.5 hours2 haursDetermine which cake the company should concentrate onproducing first and then second and finally third.Select one:a. Birthcay, Chocolate, SpecialtyOb. Specialty, Birthday, Chacolatec. Chocalate, Birthday, SpecialtyOd. Specialty, Chocolate, Birthday

Contribution Margin:-It is the difference between the Sales and variable cost of the product.…

Answered: The Eastwood Cake Factory sells…

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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1. Calculate the contribution margin per hour per Chocolate cake, Birthday cake, Specialty cake. 2. Which cakes the company should try to sell more of first, second and last?
Company XYZ is a farming company . The company are famous for producing strawberries and blueberries . The variable cost of producing and selling one box of strawberries is $ 3 , while the variable costo producing and selling one box blueberries is $ 5 . Each box of strawberries is selling for $ 10.while a box of blueberries sells for $ 13 . The company produces and sells 5 boxes of strawberries for every 2 boxe of blueberries . Assuming a fixed cost of $ 204,000 . How many boxes of strawberries need to be produced and sold to achieve breakeven ? the given answers OC 20.000 d . 4.000 e 1.600
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2. What revenue would the sale of the breakeven quantity for $5.50 per gallon generate? IceLess is an anti-icing solution sold in gallon plastic jugs. It is poured into the windshield washer bottle of your car. Wash your windshield and the solution prevents the glass from icing over for about four hours. Production incurs the following fixed and variable costs. It is priced initially at $5.50 per gallon. Fixed costs (per year) Variable Costs per gallon Rent: $18000 Glycol: $1.50 Utilities: 13200 FreezeFree 312: .50 Managerial salaries: 20000 Mfg labor: .20 Flammability permit: 12000 Packaging: .20 Other fixed expense: 2400 Inert ingredients: .60 Total fixed: $65600 Advertising: .30 Total: $3.30
Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium Beds 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 $ 3,000.00 Per-unit variable costs: Invoice cost 2,218.80 Sales commissions 281.20 Total per-unit variable costs $ 2,500.00 Total annual fixed costs: Advertising $ 236,000 Rent 178,000 Salaries 386,000 Total annual fixed costs $ 800,000 The annual breakeven point in dollars is: $4,800,000. $4,500,000. $4,100,000. $4,600,000. $4,300,000.
Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable number of customers. Data from the most recent period concerning these products appear below: Annual sales volume Unit selling price Variable expense per unit Contribution margin per unit Velcro 101,800 $ 1.65 $ 1.25 $ 0.40 Metal 203,600 $ 1.50 $ 0.70 $ 0.80 Nylon 407, 200 $ 0.85 $ 0.25 $ 0.60 Total fixed expenses are $407,200 per period. Of the total fixed expenses, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $247,200 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business. The company's managers would like to…
Homework help. Chapter 25, number 5. Need help filling in the blanks. Thank you!
Pick-Me-Up Company is introducing a new high caffeine coffee in its stores and must decide what price to set for the coffee beans. An estimated demand schedule for the product is as follows: Price 1 Lb. units demanded $4.50 85,600 $6.00 74,500 $7.50 56,000 $9.00 49,100 $10.50 34,800 $12.00 27,100 Estimated costs are as follows: Variable manufacturing costs per unit $1.50 Fixed manufacturing cost per year $38,200 Variable selling & administrative costs per unit $0.50 Fixed selling & administrative costs per year $20,900 Prepare a schedule showing management the total revenue, total cost, and total profit or loss for each selling price.At what price do you recommend Pick-Me-Up Company should choose.
D1. Account
Widget Co. produces widgets for customers. The company has provided the following financial information for the past year. Each scenario below is separate. Product Selling price per unit Sales Quantity Variable cost per unit Fixed costs Widgets $9.00 528,000 $2.00 $67,000 Do not enter dollar signs or commas in the input boxes. Round breakeven units up to the nearest whole number. Round breakeven sales to the nearest whole number. a) Calculate break-even units and break-even sales. Breakeven units = Breakeven sales = $ b) Suppose the company would like to generate an operating profit of $5,000. Determine the revenue that is needed to obtain this target, and calculate the number of units that need to be produced to meet this goal. Breakeven units = Breakeven sales = $ c) Suppose the company decides to lower the selling price from $9.00 per unit to $8.00 per unit. Calculate break-even units and break- even sales. Breakeven units = Breakeven sales = $ d) Suppose that fixed costs drop to…
Sensational Soft Drinks makes three products: iced tea, soda, and lemonade. The following data are available: Line Item Description Iced Tea Soda Lemonade Sales price per unit $0.90 $0.60 $0.50 Variable cost per unit (0.30) (0.15) (0.10) Contribution margin per unit $0.60 $0.45 $0.40 Sensational is experiencing a bottleneck in one of its processes that affects each product as follows: Line Item Description Iced Tea Soda Lemonade Bottleneck process hours per unit 3 3 4 a. Using a theory of constraints (TOC) approach, rank the products in terms of profitability. Rank Product 1. 2. 3. b. What price for lemonade would equate its profitability (contribution margin per bottleneck hour) to that of soda? Round your answer to two decimal places.fill in the blank 1 of 1$
Dear Expert please I need only question D because A up-to C is done. Thank you

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