Sabrina and Samantha are opening a soda stand. They believe that the fixed cost per week...
Sabrina and Samantha are opening a soda stand. They believe that the fixed cost per week of running the stand is $50.00.Their best guess is that they can sell 300 sodas per week at $0.75 per soda. The variable cost of obtaining a can of soda is $0.20.
A. Given her other assumptions, using Excel, find the level of sales volume that will enable them to break even.
B. Given her other assumptions, draw a break even graph and discuss how a change in sales volume affects profit. Sales volume beginning at 250 units up to 400 units at increment of 25 units which display the units and profit.
C. From the graph in (B) discuss how changes in sales volume and variable cost jointly affect profit. Create a two dimensional data table with the variable cost of a soda moving from .10 to .30 at .05 intervals and sales volume moving from 250 to 400 units at increments of 25. Graph findings.
Homework Answers
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Sabrina and Samantha
are opening a soda stand. They believe that the fixed cost per week...
Sabrina and Samantha are opening a soda stand. They believe that the fixed cost per week...
Sabrina and Samantha are opening a soda stand. They believe that the fixed cost per week of running the stand is $50.00.Their best guess is that they can sell 300 sodas per week at $0.75 per soda. The variable cost of obtaining a can of soda is $0.20. A. Given her other assumptions, using Excel, find the level of sales volume that will enable them to break even. B. Given her other assumptions, draw a break even graph and discuss...
additional instructions to follow: 4. Samantha and Sabrina are opening a soda stand. They believe the...
additional instructions to follow:
4. Samantha and Sabrina are opening a soda stand. They believe the fixed cost per week of running the stand is $50.00. Their best guess is that they can sell 300 sodas per week at $0.75 per soda. The variable cost of obtaining a can of soda is $0.20 Given her other assumptions, and using Excel, find the level of sales volume a. that will enable them to break even. Given her other assumptions, draw a...
Samantha and Sabrine are opening a soda stand. They believe the fixed cost per week of...
Samantha and Sabrine are opening a soda stand. They believe the fixed cost per week of running the stand is 50.00. Their best guess is that they can sell 300 sodas per week at 0.75 per soda. The variable cost of obtaining a can of soda is 0.20. a. given her other assumptions and using Excel, find the level of sales volume that will enable them to break even. For part b: Create a data table with sales volume beginning...
additional instructions for part B and C Samantha and Sabrina are opening a soda stand. They...
additional instructions for part B and C
Samantha and Sabrina are opening a soda stand. They believe the fixed cost per week of running the stand is $50.00. Their best guess is that they can sell 300 sodas per w sar eek at S0.75 per soda. The variable cost of obtaining a can of soda 4. Given her other assumptions, and using Excel, find the level of sales volume that will enable them to break even. a. b. Given her...
The owner of a newsstand estimates the weekly fixed cost to be $50. The owner expects...
The owner of a newsstand estimates the weekly fixed cost to be $50. The owner expects to sell 300 newspapers per week at $1.50 per newspaper. The variable cost per c newspaper is $0.50. a. What level of sales volume will allow the owner to break even? b. How does a change in sales volume (range 100-500 in increments of 50) affect profit? c. How does a joint change in sales volume (range 100-500 in increments of 50) and variable...
1) At the break even point of 400 units, variable cost were $400 and fixed costs...
1) At the break even point of 400 units, variable cost were $400 and fixed costs were $200. how much will the 401st unit sold contribute to operating profit before income taxes? 2) Break even would not change if : a) sales price increases, b) fixed cost decrease, c) sales volume decrease, d) variable cost per unit increase 3) what is break even point in dollars? sales price: $100, variable cost per unit: $40, total fixed cost :$ 120,000 4)...
Answers (Need work shown using: Contribution Margin Approach to CVP analysis): a) 150 units/week b) (i)...
Answers (Need work shown using: Contribution Margin Approach to
CVP analysis):
a) 150 units/week
b) (i) Loss of $240 a week
(ii) Profit of $800 a week
c) 200 units/week
A small manufacturing operation can produce up to 250 units per week of a product that it sells for $20 per unit. The variable cost per unit is $12, and the fixed cost per week is $1200. Answer a. How many units must the business sell per week to break...
A company sells a product with a contribution margin ratio of 20%. The company's monthly fixed...
A company sells a product with a contribution margin ratio of
20%. The company's monthly fixed expense is $400,000 and the
company's monthly target profit is $100,000. The dollar sales
required to attain the target profit are:
A.
$2,500,000
B.
$1,500,000
C.
$625,000
D.
$2,000,000
Sales above the break-even point will result in net profit equal
to _______.
A.
number of units above break-even times fixed cost per unit
B.
number of units above break-even times contribution margin per
unit...
Target Profit Trailblazer Company sells a product for $265 per unit. The variable cost is $120 per unit, and fixed costs...
Target Profit Trailblazer Company sells a product for $265 per unit. The variable cost is $120 per unit, and fixed costs are $1,000,500. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $350,175. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $350,175 units
Target Profit Woodsman Company sells a product for $250 per unit. The variable cost is $90...
Target Profit Woodsman Company sells a product for $250 per unit. The variable cost is $90 per unit, and fixed costs are $752,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units required for the company to achieve a target profit of $135,360. a. Break-even point in sales units units b. Break-even point in sales units required for the company to achieve a target profit of $135,360 units
additional instructions to follow:
4. Samantha and Sabrina are opening a soda stand. They believe the fixed cost per week of running the stand is $50.00. Their best guess is that they can sell 300 sodas per week at $0.75 per soda. The variable cost of obtaining a can of soda is $0.20 Given her other assumptions, and using Excel, find the level of sales volume a. that will enable them to break even. Given her other assumptions, draw a...
additional instructions for part B and C
Samantha and Sabrina are opening a soda stand. They believe the fixed cost per week of running the stand is $50.00. Their best guess is that they can sell 300 sodas per w sar eek at S0.75 per soda. The variable cost of obtaining a can of soda 4. Given her other assumptions, and using Excel, find the level of sales volume that will enable them to break even. a. b. Given her...
Answers (Need work shown using: Contribution Margin Approach to
CVP analysis):
a) 150 units/week
b) (i) Loss of $240 a week
(ii) Profit of $800 a week
c) 200 units/week
A small manufacturing operation can produce up to 250 units per week of a product that it sells for $20 per unit. The variable cost per unit is $12, and the fixed cost per week is $1200. Answer a. How many units must the business sell per week to break...
A company sells a product with a contribution margin ratio of
20%. The company's monthly fixed expense is $400,000 and the
company's monthly target profit is $100,000. The dollar sales
required to attain the target profit are:
A.
$2,500,000
B.
$1,500,000
C.
$625,000
D.
$2,000,000
Sales above the break-even point will result in net profit equal
to _______.
A.
number of units above break-even times fixed cost per unit
B.
number of units above break-even times contribution margin per
unit...
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