Homework Answers
Total units sold=(840,000/40)=21,000
Contribution margin per unit=(210,000/21000)=$10 per unit
Breakeven=Fixed expenses/Contribution margin
=(112,000/10)=11200 units
Contribution margin ratio=Contribution margin/Sales
=(10/40)=25%
Breakeven sales=Fixed expenses/Contribution margin ratio
=(112,000/0.25)=$448,000
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3-3 Breakeven analysis (LO 1) Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized...
3-3 Breakeven analysis (LO 1) Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized...
3-3 Breakeven analysis (LO 1) Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $840,000 Variable expenses 630,000 Contribution margin 210,000 Fixed expenses 112,000 Operating income $ 98,000 Required a. What is FirstCakes' contribution margin per unit? b. What is FirstCakes' monthly breakeven...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $840,000 Variable expenses 630,000 Contribution margin 210,000 Fixed expenses 112,000 Operating income $ 98,000 a) Assuming a 30% tax rate, how many cakes will Julianna Abdallah have to sell if she wants to earn...
Exercise 3-3 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for...
Exercise 3-3 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $48 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $646,080 Variable expenses 484,560 Contribution margin 161,520 Fixed expenses 100,920 $ 60,600 Operating income What is FirstCakes' contribution margin per unit? Contribution margin per unit $ per cake LINK TO TEXT LINK...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses $784,000 588,000 196,000 124,640 Contribution margin Fixed expenses Operating income $ 71,360 What is FirstCakes' contribution margin per unit? Contribution margin per unit $ per cake LINK TO TEXT LINK TO VIDEO...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $944,720 Variable expenses 708,540 Contribution margin 236,180 Fixed expenses 123,620 Operating income $ 112,560 A. What is FirstCakes’ contribution margin per unit? Contributing Margin per unit $_____ per cake B. What is FirstCakes’ monthly...
Question 1 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for...
Question 1 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $52 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $719,680 539,760 179,920 97,370 $ 82,550 (a) What is FirstCakes' contribution margin per unit? Contribution margin per unit $ per cake
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Please show work Sales revenue $954,240 Variable expenses 715,680 Contribution margin 238,560 Fixed expenses 143,840 Operating income $ 94,720 What is FirstCakes’ contribution margin per unit? Contribution margin per unit $Enter contribution margin in dollars per...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $994,560 745,920 248,640 132,800 $ 115,840 (a) How many cakes will Julianna Abdallah have to sell if she wants to earn $131,568 in operating income each...
Question 2 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for...
Question 2 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin $749,280 561,960 187,320 133,000 $ 54,320 Fixed expenses Operating income (a) X Your answer is incorrect. Try again. How many cakes will Julianna Abdallah have to sell if...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $48 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $840,480 Variable expenses 630,360 Contribution margin 210,120 Fixed expenses 112,200 Operating income $ 97,920 Assuming a 30% tax rate, how many cakes will Julianna Abdallah have to sell if she wants to earn $114,660...
3-3 Breakeven analysis (LO 1) Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $840,000 Variable expenses 630,000 Contribution margin 210,000 Fixed expenses 112,000 Operating income $ 98,000 Required a. What is FirstCakes' contribution margin per unit? b. What is FirstCakes' monthly breakeven...
Exercise 3-3 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $48 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $646,080 Variable expenses 484,560 Contribution margin 161,520 Fixed expenses 100,920 $ 60,600 Operating income What is FirstCakes' contribution margin per unit? Contribution margin per unit $ per cake LINK TO TEXT LINK...
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses $784,000 588,000 196,000 124,640 Contribution margin Fixed expenses Operating income $ 71,360 What is FirstCakes' contribution margin per unit? Contribution margin per unit $ per cake LINK TO TEXT LINK TO VIDEO...
Question 1 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $52 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $719,680 539,760 179,920 97,370 $ 82,550 (a) What is FirstCakes' contribution margin per unit? Contribution margin per unit $ per cake
Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $64 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income $994,560 745,920 248,640 132,800 $ 115,840 (a) How many cakes will Julianna Abdallah have to sell if she wants to earn $131,568 in operating income each...
Question 2 Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue Variable expenses Contribution margin $749,280 561,960 187,320 133,000 $ 54,320 Fixed expenses Operating income (a) X Your answer is incorrect. Try again. How many cakes will Julianna Abdallah have to sell if...
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