Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259569562
Author: Ronald W Hilton Proffesor Prof, David Platt
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 9RQ
To determine
Explain how the break- even attendance level will affect due to the donation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Genesee Music Society is a not-for-profit organization that brings guest artists to the community’s greater metropolitan area. The music society just bought a small concert hall in the center of town to house its performances. The lease payments on the concert hall are expected to be $4,000 per month. The organization pays its guest performers $1,800 per concert and anticipates corresponding ticket sales to be $4,500 per concert. The music society also incurs costs of approximately $1,000 per concert for marketing and advertising. The organization pays its artistic director $33,000 per year and expects to receive $30,000 in donations in addition to its ticket sales.
Q. If the Genesee Music Society just breaks even, how many concerts does it hold?
A nonprofit decides to provide free food for the homeless in Thanksgiving holidays. The manager wants to write a proposal to raise money from their donors. Assume that the project requires a fixed cost of $5,000 for staff and equipment. The variable cost such as utensils and food is $5 per person served. Based on the manager's experience, the manager estimates there will be 200 homeless people to serve. What is the price per person that the manager should put into his/her proposal?
a.$5
b.$30
c.$25
d.$5,000
Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for the school's annual fund-raising
project. The T-shirts are printed with a special Kemp School logo. In some years, the supply of T-shirts has been insufficient to satisfy
the number of sales orders. In other years, T-shirts have been left over. Excess T-shirts are normally donated to some charitable
organization. T-shirts cost the school $7 each and are normally sold for $14 each. Ms. Shelton has decided to order 850 shirts.
Required
a. If the school receives actual sales orders for 795 shirts, what amount of profit will the school earn? What is the cost of waste due to
excess inventory?
b. If the school receives actual sales orders for 880 shirts, what amount of profit will the school earn? What amount of opportunity cost
will the school incur?
a
b.
Profit
Waste due to excess inventory
Profit
Opportunity cost
Chapter 7 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 7 - Prob. 1RQCh. 7 - What is the meaning of the term unit contribution...Ch. 7 - What information is conveyed by a...Ch. 7 - What does the term safety margin mean?Ch. 7 - Prob. 5RQCh. 7 - Delmarva Oyster Company has been able to decrease...Ch. 7 - In a strategy meeting, a manufacturing companys...Ch. 7 - What will happen to a companys break-even point if...Ch. 7 - Prob. 9RQCh. 7 - How can a profit-volume graph be used to predict a...
Ch. 7 - List the most important assumptions of...Ch. 7 - Why do many operating managers prefer a...Ch. 7 - Prob. 13RQCh. 7 - East Company manufactures VCRs using a completely...Ch. 7 - When sales volume increases, which company will...Ch. 7 - What does the term sales mix mean? How is a...Ch. 7 - A car rental agency rents subcompact, compact, and...Ch. 7 - How can a hotels management use cost-volume-profit...Ch. 7 - How could cost-volume-profit analysis be used in...Ch. 7 - Prob. 20RQCh. 7 - Prob. 21RQCh. 7 - Explain briefly how activity-based costing (ABC)...Ch. 7 - Fill in the missing data for each of the following...Ch. 7 - Prob. 24ECh. 7 - Rosario Company, which is located in Buenos Aires,...Ch. 7 - The Houston Armadillos, a minor-league baseball...Ch. 7 - Prob. 27ECh. 7 - Europa Publications, Inc. specializes in reference...Ch. 7 - Tims Bicycle Shop sells 21-speed bicycles. For...Ch. 7 - A contribution income statement for the Nantucket...Ch. 7 - Refer to the income statement given in the...Ch. 7 - Hydro Systems Engineering Associates, Inc....Ch. 7 - Disk City, Inc. is a retailer for digital video...Ch. 7 - CollegePak Company produced and sold 60,000...Ch. 7 - Prob. 36PCh. 7 - Prob. 37PCh. 7 - Prob. 38PCh. 7 - Consolidated Industries is studying the addition...Ch. 7 - Serendipity Sound, Inc. manufactures and sells...Ch. 7 - Prob. 41PCh. 7 - The European Division of Worldwide Reference...Ch. 7 - Prob. 43PCh. 7 - Celestial Products, Inc. has decided to introduce...Ch. 7 - Prob. 45PCh. 7 - Jupiter Game Company manufactures pocket...Ch. 7 - Prob. 47PCh. 7 - Condensed monthly income data for Thurber Book...Ch. 7 - Cincinnati Tool Company (CTC) manufactures a line...Ch. 7 - Ohio Limestone Company produces thin limestone...Ch. 7 - Prob. 51PCh. 7 - Colorado Telecom, Inc. manufactures...Ch. 7 - Prob. 53CCh. 7 - Prob. 54CCh. 7 - Niagra Falls Sporting Goods Company, a wholesale...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for the school's annual fund-raising project. The T-shirts are printed with a special Kemp School logo. In some years, the supply of T-shirts has been insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. Excess T-shirts are normally donated to some charitable organization. T-shirts cost the school $7 each and are normally sold for $14 each. Ms. Shelton has decided to order 900 shirts. Required a. If the school receives actual sales orders for 825 shirts, whalomount of profit will the school earn? What is the cost of waste due to excess inventory? b. If the school receives actual sales orders for 935 shirts, what amount of profit will the school earn? What amount of opportunity cost will the school incur? Profit a. Waste due to excess inventory Profit b. Opportunity costarrow_forward1.arrow_forwardthe question number 4 and number 5 was not answered? The local non-profit symphony is planninga concert fundraiser. The organization estimates that 550 tickets can be sold for $16 person. The fixed costs are $720. The local chamber of commerce office will process ticket orders for a fee of $4 per ticket, to relieve the youth symphony of this responsibility. 1. How many tickets does your organization have to sell to break even? 2. How many tickets does your organization have to sell to earn a profit of $4320? 3. How much must your organization have in sales dollatrs to break even? (rounded to the nearest cent) 4. How much must your organization have in salesdollars to earn a profit of $4320? ( rounded to the nearest cent)? 5. What is the organization's margin of safety in Percentage and in sales dollars?arrow_forward
- I need some assistance with question 3 of this paper using the information on the document provided to prepare a contribution approach income statement.arrow_forwardThe Tech Student Government Association (SGA) has several campus projects it undertakes each year and its primary source of funding to support these projects is a T-shirt sale in the fall for what is known as the “orange effect” football game (with orange being one of Tech’s colors). The club’s publicized (media) objective is for everyone in the stadium to wear orange. The club’s financial goal is to make a profit of $150,000, but in order to have a significant number of fans buy the shirts and wear them to the game, it doesn’t want to price the T-shirts much more than $6. The stadium seats 62,000 fans, and the SGA would like to sell approximately 45,000 orange T-shirts to achieve the desired orange effect, which it’s relatively confident it can do. It will cost$100,000to purchase, silk-screen print, and ship this many T-shirts. The SGA sells the shirts through three sources: online, the two Tech bookstores, and a local independent bookstore. While the bookstores don’t expect to share…arrow_forwardBecky Shelton, a marketing coordinator for Douglass Enterprises, is in charge of ordering the T-shirts to be sold for the company's annual fund-raising project. The T-shirts are printed with a special Douglass Enterprises logo. In some years, the supply of T-shirts has been insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. Excess T- shirts are normally donated to some charitable organization. T-shirts cost the company $7 each and are normally sold for $14 each. Ms. Shelton has decided to order 700 shirts. Required a. If the company receives actual sales orders for 625 shirts, what amount of profit will the company earn? What is the cost of waste due to excess inventory? b. If the company receives actual sales orders for 740 shirts, what amount of profit will the company earn? What amount of opportunity cost will the company incur? a. Profit a. Waste due to excess inventory b. Profit b. Opportunity costarrow_forward
- Becky Shelton, a marketing coordinator for Douglass Enterprises, is in charge of ordering the T-shirts to be sold for the company's annual fund-raising project. The T-shirts are printed with a special Douglass Enterprises logo. In some years, the supply of T-shirts has been Insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. Excess T-shirts are normally donated to some charitable organization. T-shirts cost the company $7 each and are normally sold for $14 each. Ms. Shelton has decided to order 870 shirts. Required a. If the company receives actual sales orders for 795 shirts, what amount of profit will the company earn? What is the cost of waste due to excess inventory? b. If the company receives actual sales orders for 910 shirts, what amount of profit will the company earn? What amount of opportunity cost will the company Incur? a. Profit a. Waste due to excess inventory b. Profit b. Opportunity costarrow_forwardsity in Philadelphia used a biplane to pull a sign promoting its evening program, and one in Mississippi you 5-38 Advertising Expenditures and Nonprofit Organizations Many colleges and universities have been extensively advertising their services. For example, a upiu sity in Philadelphia used a biplane to pull a sign promoting its evening program, and one in Mississin designed bumper stickers and slogans as well as innovative programs. Suppose Hilliard College charges a comprehensive annual fee of $14,800 for tuition, To and board, and it has capacity for 2,000 students. The admissions department predicts enrollmento 1,700 students for 20X1. Costs per student for the 20X1 academic year are as follows: Variable Fixed Total Educational programs $5,200 $ 3,900 $ 9,100 Room 1,100 2,300 3,400 Board 2,500 500 3,000 $8,800 $ 6,700" $15,500 *Based on 1,700-2,000 students for the year. The assistant director of admissions has proposed a 2-month advertising campaign using radio and television…arrow_forwardsity in Philadelphia used a biplane to pull a sign promoting its evening program, and one in Mississippi you 5-38 Advertising Expenditures and Nonprofit Organizations Many colleges and universities have been extensively advertising their services. For example, a upiu sity in Philadelphia used a biplane to pull a sign promoting its evening program, and one in Mississin designed bumper stickers and slogans as well as innovative programs. Suppose Hilliard College charges a comprehensive annual fee of $14,800 for tuition, roo and board, and it has capacity for 2,000 students. The admissions department predicts enrollment of 1,700 students for 20X1. Costs per student for the 20X1 academic year are as follows: univer- Variable Fixed Total Educational programs $5,200 $ 3,900 $ 9,100 Room 1,100 2,300 3,400 Board 2,500 500 3,000 $8,800 $ 6,700* $15,500 *Based on 1,700-2,000 students for the year. The assistant director of admissions has proposed a 2-month advertising campaign using radio and…arrow_forward
- A large land-grant university that is currently facing severe parking problems on its campus is considering constructing parking decks off campus. A shuttle service could pick up students at the off campus parking deck and transport them to various locations on campus. The university would charge a small fee for each shuttle ride, and the students could be quickly and economically transported to their classes. The funds raised by the shuttle would be used to pay for trolleys, which cost about $170,000 each. Each trolley has a 12-year service life, with an estimated salvage value of $12,000. To operate each trolley, additional expenses will be incurred, as given in the table below. If students pay 10 cents for each ride, determine the annual ridership per trolley (number of shuttle rides per year) required to justify the shuttle project, assuming an interest rate of 6%. Click the icon to view the additional expenses. Click the icon to view the interest factors for discrete compounding…arrow_forwardPlease share an explanation with each journal entry. Also, please do not cut and paste answer from another question as some just did. If JE#1 is $30,000 entry, and the question states 10,000 entry please explain. Thank you.arrow_forwardCoparrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT