CPAN112_ProgramAssignment_CostVolumeProfitAnalysis_BreakEven

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Humber College *

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112

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Computer Science

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Feb 20, 2024

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docx

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3

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Fundamentals of Numeric Computing CPAN 112 Cost-Volume-Profit Analysis and Break-Even Program and Assignment Please read the following instruction very carefully before answering any questions: Please read all the questions very carefully. Please provide your answers in the boxes below each question, and do not change the text colour. Your answer MUST show the solution procedure. There is no credit if you only state the final answer. Please highlight your final answer to each question. Please keep the naming conventions requested in this lab and each question. Once you complete your lab, rename your word document file to the ( CPAN112_CostVolumeProfitAnalysis_BreakEven_FirstName _LastName ). Replace FirstName and LastName with your first name and last name, respectively. It will be a 10% mark deduction if you do not follow the guidelines mentioned above.
1) To earn some money, John is thinking of starting up a "Back-Yard BBQ" stand at his university campus this summer. The basic "BBQ" equipment will cost $2690, and the variable cost (VC) for each "BBQ Meal" is estimated to be $6.75. He thinks he will be able to sell each "BBQ Meal" for $10.00. [20 points] a. What is the break-even quantity of "BBQ Meals" for John's "Back-Yard BBQ" stand? [10 points] b. If John's goal for profit is $2500 for his fall semester tuition, how many "BBQ Meals" would he need to sell in the summer to reach his goal? [10 points] 2) Peter is thinking of starting up a "Personal Financial Services" consultation in his spare time. The basic office equipment will cost $2285, and the variable cost (VC) for each consultation is estimated to be $14.60. He plans to bill each client $65 per consultation.? [30 points] a. What is the break-even quantity of consultations for Peter's "Personal Financial Services" operation? [10 points] b. If Peter's profit goal is $1000, how many consultations would he need to reach his goal? [10 points] c. Briefly explain the concept of a "Contribution Margin" and demonstrate how the Contribution Margin (CM) determined from the information above can be used to determine the same break-even quantity determined in part (a)? [10 points]
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