Question

Question 30 (1 point) In the table below, what is the contribution margin per unit for product 1? Product 1 Price/Unit Variable Cost/ Unit Fixed Cost Product 2 83 40 33,600 55 30 35000 Your Answer: Answer Question 31 (1 point) A restaurant sells pizza at a rate of $13.13/slice. Expenses for the restaurant include raw material for pizza at $4.83 per slice, $188.40 as monthly rental and $56.00 monthly as insurance. How many slices should the restaurant sell in a month to break even? Answer rounded to 1 decimal points following standard rules for rounding Your Answer:

Answer 1

30.

	Product 1
Price/Unit	83
Variable Cost/Unit	40
Fixed Cost	33600
Contribution Margin	43

Contribution Margin per unit = Sale Price Per unit - Variable Cost per Unit = 83-40 = 43

31.

Selling Price of Pizza = 13.13/slice

Raw material = 4.83/slice

Monthly Rental = 188.40

Monthly Insurance = 56

Variable cost = 4.83

Fixed cost = 188.40+56 = 244.4

Breakeven Quantity = FIxed Cost / (Sale Price - Variable Cost) = 244.4/(13.13-4.83) = 29.4

32.

X (period)	Y (sales)	Exponential Smoothing alpha = 0.25
1	14	14
2	14	14
3	9	14
4	10	12.75
5	15	12.06
6	12	12.79

Exponential Smoothing Formula:

Ft+1 = aDt + (1 - a) Ft

Where Ft+1 = Forecast for current period

Dt = Sales of the previous period

Ft = Forecast of the previous period.

As the initial forecast is not given, it is assumed to equal to the actual sales for the same period = 14

Forecast for period 2 = 0.25*14+0.75*14 = 14

Similarly, forecast for period 4 = 0.25*9+0.75*14 = 12.75

39.

The crossover point is the quantity at which the profits are equal.

	Product 1	Product 2
Price/Unit	66	52.5
Variable Cost/Unit	20	29
Fixed Cost	34800	20400
Crossover point	640
Profit/Loss	-5360	-5360

Profit Expression if the quantity is x

Product 1 = (66-20)x-34800

Product 2 = (52.5-29)x-20400

At crossover point:

(66-20)x-34800 = (52.5-29)x-20400

=> 46x-23.5x = (34800-20400)

=> x = 14400/22.5 = 640

At 640 units the profit/loss of the two products are equal which is:

Product 1 = (66-20)*640-34800 = -5360

Product 2 = (52.5-29)*640-20400 = -5360

loss at crossover point = -5360

40.

Profit = 104/unit

Loss due to faulty = 6.1/unit

Expected selling qty =122 units

If 2% are faulty, then 122*2% = 2.44 units are faulty

Total profit = (122-2.44)*104 = 12434.24

Loss Due to faulty = 2.44*6.1 = 14.88

Net profit = 12434.24-14.88 = 12419.36

Company can expect a profit of 12419.36 from the selling.