Wholesome Dairy processes milk. The cost of the milkprocessing is $1,370,000. Wholesome is looking toincrease its net income and is exploring the possibility ofexpanding its products to include cream and/or ice cream.It takes 2 gallons of milk to make a half gallon of icecream.Selling Price822,000 gallons $3.09 per gallon6.21 per half gallonUnits ProducedProductMilkIce CreamRequired:1. How many half gallons of ice cream can Wholesomemake?2. What are the additional processing costs to convert themilk to ice cream?3. Should Wholesome sell the milk or process it furtherand sell ice cream?

1.Identify the number of half gallons of ice cream Wholesome can make.

Answered: Wholesome Dairy processes milk. The…

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.How many units of scooters, best calls, and rollerblades should summertime Inc. produce? 2.What is the maximum amount summertime and corporate would be willing to pay for another 1200 additional units of fun? info: The demand for the products far exceeds the direct materials available to produce the products. Fun cost $2 per pound and a maximum of 7975 pounds is available each month. Summertime Inc. must produce a minimum of 175 units of each product
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Required information [The following information applies to the questions displayed below.] C. W. McCall sells a goldplated souvenir mug; McCall expects to sell 1,600 units for $45 each to earn a $25 contribution margin per unit. Janice McCall, president, expects the year's total market to be 32,000 units. For the year just completed, the local college won the national hockey championship, and as a result, the total actual market was 100,000 units. C. W. McCall sold 3,000 units and calculates sales variances using contribution margin. What is the firm's market share variance? Market share variance
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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
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ok Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $520 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes for $520 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $520 each. 5. Suppose Sandy Bank wants to earn $69,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $520 each. , t Complete this question by entering your answers in the tabs below. t Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. nces Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold 450 610 700 Total costs Variable Costs…
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Fresh to Go makes a variety of delicious and healthy smoothies. It's most popular drinks contain an imported pomegranate julce and Fresh to Go can only import 64,000 ounces of the juice per month. The juice is used to make 3 different types of smoathies: Pure Pom Cherry Pom Pom Punch Selling price Variable cost Contribution margin $13.00 $9.00 $4.00 $a.00 $5.00 $3.00 $6.00 $3.50 $2.50 Ounces of pomegranate juice used 4 1 Assume there is unlimited demand for the smoothles and Fresh to Go wants to maximize sales of its smoothie with the highest contribution margin per ounce. Normally, the company pays S0.30 per ounce for pomegranate juice up to 64,000 ounces. If the company can obtain additional ounces above the 64,000, what is the maximum price it would be willing to pay per ounce? $1.10 $4.30 $2.80 $0.00
The Dairy Division of Concord Corporation produces and sells milk to outside customers. The operation has the capacity to produce 200000 gallons of milk a year. Last year’s operating results were as follows: Sales (150000) gallons $675000 Variable costs 292500 Contribution margin 382500 Fixed costs 100000 Net Income $ 282500 Assume the Dairy Division is operating at capacity. If the Yogurt Division wants to purchase 40000 gallons of milk from the Dairy Division, what is the minimum price that will allow the Dairy Division to maintain its current net income? $1.88 per gallon $4.50 per gallon $1.95 per gallon $2.55 per gallon
Seved Help Save & Exit Submit A company purchases fruit from farmers for $2.00 a pound. The fruit can be sold for $3.20 a pound or it can be used to make jelly. Each case of jelly contains three-quarters of a pound of fruit and can be soid for $4.40. In addition to the cost of the fruit, making and selling each case of jelly incurs additional variable costs of $1.10 per unit. The monthly fixed costs associated with making the jelly include: O Qu Jelly production salaries Depreciation of jelly-making equipment Salary of salesperson dedicated to selling jelly $4,000 400 2,000 Total fixed costs $6,400 Colla The jelly-making equipment does not wear out through use and it has no resale value. Assuming the company makes and sells 8,000 cases of Jelly. what is the financial advantage (disadvantage) of continuing to process fruit into jelly? Multiple Choice $(5,200) $(5,600)

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