Question

Sve ohn le) Chapter 6 - CVP Analysis - Kona Ice Case Study - Your unique variables can be found in "My Grades" Failure to use your assigned variables will result in a grade of O-assigned for the case study 99875 12 Assume a level of activity of 2,000 units for the month. Sales 20 oz. snow cones sell for $4.00 each Variable Expenses Inventory Pack, provides all supplies for $5.500 $50,000 in sales Deliveries of Ice, enough to complete $150/ delivery 1,000 mediums Fixed Expenses Truck, 10 year useful life Insurance and other overhead costs Salaries, monthly To yearly $119,850 X $600 monthly [Vari) in My Grades $15,000/12 - 1250 Franchise Fee, annually 1. Calculate the Variable costs per snow cone. 50.000.-12500 221 4 ice 150/1000 .15 SS00 242.0 +227=242 2. Calculate the Fixed costs per month (you maybe have to convert some from annual to month - assume straight line over the year) 2978$15 Sales 3. Using the information from 1 & 2 above, complete a contribution format income statement for the month, assuming the given level of activity for the month. 2000 Less: Variable Expenses Contribution Margin Less: Fixed Expenses Net operating Income sells 4. Calculate what the operator of the Kona Ice snow cone truck has to sell each month to break even # of snow cones SSS Sales 4. 31600 7.8000=0.995 2980757.1.58=1898 3 208.75% o que as 10.12 7591.77 5. Assume that the operator of the Kona Ice snow cone truck wants to make an operating profit of $[Var2] in My Grades per month. How many show cones must be sold each month to achieve this profit? # of snow cones SSS Sales 302.001 Fall 2020
(Var1) TP: 150

(Var) Sal:2000

Answer 1

DOM5 Page No. Date 1 1 Answer:- O calculation of 와 Variable cost per Snow Cone: - per usit Variable Expo * Inventory pack =) $5500 on sale of $Suod 7 $Svoo 12500 wit $S SUD .44 per snowcone 12500 1 * $150 delicery 150 als per Per 1000 mediums snow cone + $059 per sno / on Truck $11985010 fireed cost Per month it Depreciation It Insurance and overhead cost It salaries + Franchise fee %12 -> $998.75 =) $ 600 = $180 i $1250 fireed cost per month $2998.75 Income statement (green tered of actricity) Sale Lesson Variable Expo contribution margin Lesso fixed exepenses 2000 x $4 - 8000 2000 X3.59 (1180) $6820 (29980751 Net operating income $ 3821.25

DOMS Page No. Date 1 / ① Break even Poest & Sale # of snow coanes fiseed lost contribution per unit 880 wit x $4 $2998.75 - $3520 $ 3.4 880 wziet Capprox.) unit [nate: contribution per unit = contribution ->$68201 2022 $ 3.41 sale & tenet in sale to acheie profit of 2000 = & Contribution fixed lost t Profit $4998.75 9$299875 +$2000 no. in unit to be sold to acheine Profit (zero - contribution contrabution Per runt $4998.75 $3.01 -) 1466 Capprose.) units # Snow Cone # sale = 1466 unit x $ 4 = $5864 Cap prose)