use the contribution margin approach.
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Plank, the new owner of the vehicle accessory shop, is considering buying sets of winter tyres for $ 299 per set and selling them at $ 520 each. Fixed costs related to this operation amount to $ 3250 per month. It is expected that 18 sets per month could be sold. How much profit will Plank make each month? Hint: use the contribution margin approach.
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- A young mechanical engineer is considering establishing his own small company. Aninvestment of P400,000 will be required which will be recovered in 15 years. It is estimatedthat sales will be P800,000 per year and that operating expenses will be as follows. (see attached photo) The man will give u his regular job paying P216,000 per year and devote full time to the operation of the business; this will result in decreasing labor cost by P40,000 per year, material cost by P28,000 per year and overhead cost by P32,000 per year. If the man expects to earn at least 20% of his capital, should he invest?You work for a sprinkler manufacturing company. You want to propose the manufacturing of a new type of sprinkler head. The manufacuring process has a fixed annual cost of $750,000. If you want to charge $275 per sprinkler head, and each sprinkler head costs $205 to manufacture, how many sprinkler heads will you need to sell in order to break even? 9,882 sprinkler heads 10,715 sprinkler heads 7,515 sprinkler heads 15,312 sprinkler headsJanine’s Bakeshop is doing well that it needed to expand its operation. This coming September, she decides to rent an additional space for P15,000 per month and bought additional equipment with a monthly depreciation cost of P8,000. These add to her current cost of P45,000 per month as she is open daily. The variable cost per piece of her famous pastry is P21. With this new setup, she can sell a net of 500 pcs per day. For peso amounts, round your answers to the nearest cents (i.e. two decimal places).a. How much is the minimum selling price to breakeven? b. She decided to sell at P30 per piece. At what quantity per day will she breakeven? c. If she wants to earn a profit of at least P3,000 per day and can sell 500 pastries a day, what should her selling price be?
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