Chapter 7 In Class Practice Problems

Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $81 per unit. The company's monthly fixed expense is $23,700. Required: 1. Calculate the unit sales needed to attain a target profit of $6,000. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,300. (Round your intermediate calculations to the nearest whole number.) 1. Units sales to attain target profit 550| units 2. Dollar sales to attain target profit

A fruit stand owner rents a stall at the market for $255$⁢255. Each month, the owner spends $295$⁢295 for an accountant’s services and $695$⁢695 on fresh fruit. The fruit stand sells 135135 kilograms of fruit monthly at a price of $8$⁢8 per kilogram.   Step 1 of 2:  Calculate the fruit stand’s profit or loss. Write the exact answer; do not round. Use a minus sign to show losses if necessary.

I need help with question 4 and 5 so if you could please explain to me how this needs to be done.

You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own.  You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues            $400,000Cost of Food        $120,000Salaries/Wages   $100,000Utilities                 $25,000Taxes                   $20,000  What is your accounting profit?  Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change?  Show your calculations.  Explain how and why your answers will change or…

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4. EMERGENCY! Production just informed management that one of its five glycol squeezers has been destroyed by a rogue computer virus.  Production capability is now only 23000 gallons at most.  The squeezer cannot be fixed and IceLess cannot afford a replacement.  This breakdown will NOT lower fixed costs. This breakdown will not change variable cost per unit, either.  If only 23000 gallons are produced, and the earning target remains $94400 above fixed costs, what price per gallon must now be charged? (show your calculations) IceLess is an anti-icing solution sold in gallon plastic jugs.  It is poured into the windshield washer bottle of your car.  Wash your windshield and the solution prevents the glass from icing over for about four hours.  Production incurs the following fixed and variable costs.  It is priced initially at $5.50 per gallon. Fixed costs (per year)                        Variable Costs per gallon    Rent: $18000                                   Glycol: $1.50…

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14 The break-even point in unit sales increases when variable expenses: Decrease and the selling price increases. Decrease and the selling price remains unchanged. Increase and the selling price remains unchanged. Remain unchanged and the selling price increases.

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Problem1: A summer camp for youngsters has the following data: Charge per camper (selling price) Fixed costs $144 $4800 Variable cost per camper Capacity 1. Write the total revenue equation. 2. Write the total cost equation. 3. Determine the breakeven point in units. 4. Calculate the breakeven point in dollars. 5. If fixed costs decrease 10%, what is the new breakeven point in units and in dollars? 6. What is the profit or loss of the session if the camp operates at 80% capacity? Problem 2: A company is considering a capital cost of $80000 to acquire new machinery. The expected annual revenue is $45000. After 6 years its salvage value will be $15000. An overhaul costing $10000 will be needed in year 3. The operation and maintenance cost (O&M) will be $5000 per year. Complete the corresponding table and cashflow diagram below. a. Cash flow table Year 0 1 2 3 4 5 6 $96 200 campers Capital Cost Annual Revenue b. Cash flow diagram O&M Overhaul Salvage Cost

QUESTION 16 1. A 325,000 sf office building is 25% vacant. The remaining occupied sf generates $9,000,000 in annual base rent from tenant leases in place. If annual market rents for comparable properties average $40.00/sf, and if market vacancy and credit loss represent a combined $800,000 in lost annual rent, what is the building's Gross Potential Revenue? Show your work. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Paragraph Arial 14px O WORDSPOWERED BY TINY

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10. Smart Phones, Inc. buys one model of smartphone, paying $2370 per case of 20 phones. Find the asking price for each assuming a 40% markup on cost.

3. Business is booming for Consulting Services, Inc. (CSI), a local supplier of computer set-up consulting services. The company can profitably employ technicians as quickly as they can be trained. The average hourly rate billed by CSI for trained technician services and the number of billable hours (output) per quarter over the past six (6) quarter are as follows: Q1 Q2 Q3 Q4 Q5 Q6 Hourly rate($) 20 25 30 35 40 45 Billable hours 2,000 3,000 4,000 5,000 6,000 7,000 Quarterly demand and supply curves for CSI services are as follows: Qd=4,000-200P +2,000 T (Demand) Qs -2,000+ 200 P Where Q = output; P= price; T = trend factor, T-1 during first quarter and increases by 1 Unit per quarter, in other words, Q2 = 2. a. Express each demand and supply curve in terms of price as a function of output. b. Plot the demand and supply functions over the last six (6) quarters. C. What are your observations based on response to part (b)?

"A taxi company currently has nine cabs in its fleet, and its total daily cost is $4,000. If the company added a 10th cab, its daily total cost would be $4,200, or $420 per cab. Adding the 10th cab will increase the daily total revenue by $300. Should the company add the 10th cab?  (Yes/No)"

Frank is an engineer who had decided to leave his job making $150,000 per year to brew and sell craft beer. He spends $30,000 per year on ingredients and $20,000 per year to rent a space to brew. His sales revenue from selling his beer is $150,000 per year. (a) Assuming this information is complete and correct, calculate Frank's Accounting Profit. $ (Please enter your answer without the dollar sign) (b) Assuming this information is complete and correct, calculate the Frank's Economic Profit. $ (Please enter your answer without the dollar sign) 9:17 PM 72°F Clear pe here to search 5/13/202

Help ४ Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and whose variable expense is $20 per unit. The company's monthly fixed expense is $5,100. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. e here to search O 100 Font Family 31 Samp T Font Sizes J JF 58 PARKE WAARME A WAR www. Shakle

​c) What is the monthly profit or loss if the company stays with Clunker and sells 90,000 bags per​ month?   The monthly profit or loss if the company stays with Clunker and sells 90,000 bags per month is ​$enter your response here. ​(Round your response to the nearest dollar and include a minus sign if​ necessary.)

18. Annual sales: $165,000 Average inventory: $14,700 Inventory turnover (nearest tenth):? Powered by Linklt! >> F9 吕口 F3 000 D00 F4 F7 F8 F5 F6 & $ 4

06. The minimum that suppliers will accept for the 8th unit of this product is     a) $2     b) $8     c) $12     d) $16

Instructions: Fill – up the vacant table. Given is as follows: Week Sales ( $1,000) Four-week Moving Average Four-Week Weighted Moving Average 1 23 2 36 45 4 46 55 64 7 55 58 9. 66

Problem 1 A lash adjuster keeps the pressure constant on engine valves, increasing automobile engines' fuel efficiency. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation: D=(2,000-p)/0.10. 6 a) What is the demand (D) when total revenue is maximized? b) What important data are needed if maximum profit is desired? & 7 IAA fg 8 DII myhp np f10 DDI 9 fi Po 112 prt sc

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Upon graduating with an accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually. annual operating profit? A) -$10,000. B) $40,000. C) $70,000. D) $80,000.

7 8 Part 3: Economic Ordering Quantity 9 1. Calculate the company's EOQ for Engine Valve A1100 (make sure to link values to the other tabs): 10 11 Estimated Annual Sales this year: 12 Ordering cost for each order: 13 Carrying Cost per unit 14 15 EOQ: 16 units units 17 2. Complete the table below by linking to the appropriate cells in the other tabs: 18 19 Order Size Total Total Carrying Cost Ordering Cost 24 20 21 28 29 30 22222222223 25 26 5 10 20 50 100 27 3. Create a graph of both the Carrying and Ordering cost. Make sure your EOQ ties to where the two lines cross. Rename your Chart to: Cost of Ordering & Carrying Inventory L

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4-2 Game Day Shuttle Service You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What are your MCs for each customer load level? What is the AC? If you are compensated $10 per ride, what customer load would you want?

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Quantity 0 1 2 3 4 5 6TC(in $) 5 10 13 18 25 34 45Calculate MC, AVC, ATC for the firm ?

Tennis Products, Inc., produces three models of high-quality tennis rackets. The following table contains recent information on the sales, costs, and profitability of the three models: Average Quantity Current Total Variable Cost Contribution Margin Contribution Sold Price Revenue Per Unit Per Unit Margin* Model (Units/Month) ($) ($) ($) ($) ($) 15,000 30 450,000 15.00 15 225,000 В 5,000 35 175,000 18.00 17 85,000 10,000 45 450,000 20.00 25 250,000 Total $1,075,000 $560,000 *Contribution to fixed costs and profits. The company is considering lowering the price of Model A to $27 in an effort to increase the number of units sold. Based on the results of price changes that have been instituted in the past, Tennis Products' chief economist estimates the arc price elasticity of demand to be -2.5. Furthermore, she estimates the arc cross elasticity of demand between Model A and Model B to be approximately 0.5 and between Model A and Model to be approximately 0.2. Variable costs per unit are…

Any shopping mall has so- shopping mall called common areas: hallways, food courts, kids play areas, and so on. A ? shopping mall owner splits the total annuals expenses for the common area maintenance (CAM) between all tenants: anchor stores and in-line tenants. Because anchors bring a lot of customers into the mall, it is customary to charge them a relatively low CAM charge per square foot per year on top of their base rent. Calculate the CAM charge per square foot per year that the in-line tenants are required to pay on top of their base rents.

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