help with Q2-3 pls UpvoteIn past seasons, the Toronto Six have sold large popcorn buckets at their games for $4. It costs the Six $0.75 to produce each bucket of popcorn. Due to pandemic-related supply chain issues, the cost to produce the popcorn buckets has increased to $1.25 per bucket during the 2021-2022 season. What is the margin ratio for thepopcorn buckets, if the Six choose to not change the sales price? What is the minimum price that popcorn buckets should be sold at to ensure that the Six’s margin ratio remain within the industry average (i.e., 75%-85%) for concession sales? You are the concessions manager for a minor league baseball team, and you have decided to add new items to your concession stands for the upcoming season. You have sourced three new items from the local food vendors:Ice cream bars (cost $1.85 per bar)Personal pizza (cost $2.25 per pizza)Gourmet lemonade (cost $1.95 per cup)Ideally, you would like to add all three items; however, the team’s owner has a rule that all concession stand items must return an 80% profit margin and cannot be priced over $10. Based on the necessary sales price needed to align with the owner’s rules, can you add all three items to the menu for the upcoming season?

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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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help with Q2-3 pls Upvote

In past seasons, the Toronto Six have sold large popcorn buckets at their games for $4. It costs the Six $0.75 to produce each bucket of popcorn. Due to pandemic-related supply chain issues, the cost to produce the popcorn buckets has increased to $1.25 per bucket during the 2021-2022 season. What is the margin ratio for the

popcorn buckets, if the Six choose to not change the sales price? What is the minimum price that popcorn buckets should be sold at to ensure that the Six’s margin ratio remain within the industry average (i.e., 75%-85%) for concession sales?

You are the concessions manager for a minor league baseball team, and you have decided to add new items to your concession stands for the upcoming season. You have sourced three new items from the local food vendors:

Ice cream bars (cost $1.85 per bar)
Personal pizza (cost $2.25 per pizza)
Gourmet lemonade (cost $1.95 per cup)

Ideally, you would like to add all three items; however, the team’s owner has a rule that all concession stand items must return an 80% profit margin and cannot be priced over $10. Based on the necessary sales price needed to align with the owner’s rules, can you add all three items to the menu for the upcoming season?

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