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 at 250 units up to 400 units at increments of 25 units which displays the units and profits. Graph this data table like is done in the Teez instructor video.
For part c: 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 you findings.
For part d: Please interpret your results.
Homework Answers
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Samantha and Sabrine are opening a soda stand. They believe the
fixed cost per week of...
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...
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...
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...
A firm sells 1,000 units per week. Suppose the average variable cost is $25, and the...
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Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). b. What is the group’s contribution margin? c. What is the group’s breakeven point in volume? d. What volume is required to provide a pretax profit of $100,000? e. Complete...
2-22 A small company manufactures a certain product. Variable costs are $20 per unit and fixed...
2-22 A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P-0.25D 250, where P is the unit sales price of the product and D is the annual demand. Total cost Fixed cost + Variable cost Revenue Demand x Price e Profit Revenue-Total cost Set up your graph with dollars on the y axis (between 0 and $70,000) and, on the x axis, demand D:...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). b. What is the group’s contribution margin? c. What is the group’s breakeven point in volume? d. What volume is required to provide a pretax profit of $100,000?...
The following annual per unit cost data at an activity level of 10,000 units has been...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product. $ Per Unit Sales 150.00 Direct labor Direct material Variable manufacturing overhead 15.00 18.00 7.50 50.00 1.50 Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 40.00 Fixed administrative expenses 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: $x,xxx The company is considering a...
The following annual per unit cost data at an activity level of 10,000 units has been...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product 5 Per Unit 150.00 15.00 18.00 7.50 Sales Direct labor Direct material Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Fixed administrative expenses 50.00 1.50 40.00 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: $x.xxx The company is considering a...
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...
2-22 A small company manufactures a certain product. Variable costs are $20 per unit and fixed costs are $10,875. The price-demand relationship for this product is P-0.25D 250, where P is the unit sales price of the product and D is the annual demand. Total cost Fixed cost + Variable cost Revenue Demand x Price e Profit Revenue-Total cost Set up your graph with dollars on the y axis (between 0 and $70,000) and, on the x axis, demand D:...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product. $ Per Unit Sales 150.00 Direct labor Direct material Variable manufacturing overhead 15.00 18.00 7.50 50.00 1.50 Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 40.00 Fixed administrative expenses 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: $x,xxx The company is considering a...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product 5 Per Unit 150.00 15.00 18.00 7.50 Sales Direct labor Direct material Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Fixed administrative expenses 50.00 1.50 40.00 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: $x.xxx The company is considering a...
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