3. As manager of the St. Cloud Theater Company, you have decided that concession sales wouldsupport themselves. The following table provides the information you have been able to puttogether thus far:ItemSoftdrinkSelling Price$1.00Variable Cost$0.65Percent of RevenueWineCoffee1.751.000.950.30252530Candy1.000.3020Last year's manager. Jim Freeland, has advised you to add 10% of variable cost as a wasteallowance for all categories.You estimated labor cost to be $250.00 (5 booths with 2 people each). Even if nothing is sold,your labor cost will be $250.00, so you decide to consider this as fixed cost. Booth rental, whichis a contractual cost of $50.00 for each booth per night, is also a fixed cost.a. What is the break-even volume per evening of performance?b. How mush would you expect to sell each evening at the break-even point?

A) Given- Labor cost = $250 Booth rental Cost = $50 x 5 = $250 Total Fixed Cost = Labor + Booth…

Answered: 3. As manager of the St. Cloud Theater…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

1. Company resources include the following: A. Human, psychological, and social B. Financial, human, and capital C. Functional, formal, and financial D. Corporate, investor, and employment 2. The Operations Department deals with: A. The production and distribution of a company's good or service B. All legal matters relating to the business C. The creation, pricing, selling, and promotion of a company's good or service D. All of these 3. Value means customers believe: A. You cannot compete on price B. They are getting a good deal for the price paid C. Both You cannot compete on price and They are getting a good deal for the price paid D. None of these
Consider the following thoughts of a manager at the end of the company’s third quarter: If I can increase my reported profit by $2 million, the actual earnings per share will exceed analysts’ expectations, and stock prices will increase. The stock options that I am holding will become more valuable. The extra income will also make me eligible to receive a significant bonus. With a son headed to college, it would be good if I could cash in some of these options to help pay his expenses. However, my vice president of finance indicates that such an increase is unlikely. The projected profit for the fourth quarter will just about meet the expected earnings per share. There may be ways, though, that I can achieve the desired outcome. First, I can instruct all divisional managers that their preventive maintenance budgets are reduced by 25 percent for the fourth quarter. That should reduce maintenance expenses by approximately $1 million. Second, I can increase the estimated life of the…
2. Analyze the situation and answer the following questions. Ed and Barbara Bonneau started their wholesale sunglass distribution firm 30 years ago with $1,000 of their own money and $5,000 borrowed from a country banker in Ed’s hometown. The firm grew quickly, selling sunglasses and reading glasses to such companies as Wal-Mart, Eckerd Drugs, and Phar-Mor. In addition, the Bonneaus enjoyed using the company to do good things. For example, they had a company chaplain, who was available when employees were having family problems, such as a death in the family.Although the company had done well, the market had matured recently and profit margins narrowed significantly. Wal-Mart, for example, was insisting on better terms, which meant significantly lower profits for the Bonneaus. Previously, Ed had set the prices that he needed to make a good return on his investment. Now, the buyers had consolidated, and they had the power. Ed didn’t enjoy running the company as much as he had in the…
4.1REQUIREDStudy the information given below and calculate the following if the sales manager’s proposal is accepted:4.1.1 Break-even quantity.4.1.2 The number of units that must be sold to achieve the company’s profit objective. INFORMATIONSirloin Enterprises manufactures a product that sells for R9 each. The company presently produces and sells 90 000 units per year. Total variable manufacturing costs and selling costs are R405 000 and R81 000 (10% of sales) respectively. Fixed costs are R226 440 for manufacturing overheads and R97 200 for selling and administrative activities.The sales manager has proposed that the price be increased to R10.80 per unit. The company’s profit objective is 10% of sales. 4.2 ENO Ltd, a pharmaceutical company, is seeking finance for the development of a vaccine aimed at reducing the spread the Corona virus. The company is seeking funding only from the public in the form of equity as well as long-term borrowing.In light of the above, critically discuss…
Write a 700- to 1,050-word summary explaining the agency’s budget strategies and policies and how the agency’s governing policies determine budget administration. Include the following details in your summary: Governing Policies: Governing policies help an organization develop and implement procedures or policies that result in efficient, consistent operations. Summarize the published mission of the agency. Summarize 1–2 governing policies related to the agency’s mission. Explain how the policy/policies support the agency’s mission. Strategic Plan: Organizations use strategic plans to define present and future vision, goals, and objectives. Summarize 2–3 primary goals and objectives outlined in the agency’s strategic plan. Explain how the goals and objectives align with the agency’s mission. Public Sector Funding: Most criminal justice organizations are funded by government entities; these funds are often determined by economic factors. Describe 2–3 programs or initiatives…
Tony and Noel are two engineers who co-founded a technology company in 2004 based in the Midlands in the UK, Alpha-Z Ltd. Tony is The Chief Executive Officer CEO, and Noel is the Chief Technology Officer CTO. The company originally focused on hardware engineering by fitting high quality screens and projectors for tradeshows and events. Alpha-Z in its early days had 90% of employees from hardware engineering background. In 2010 the cofounders appointed a strategy director Ben, who comes with streategy and management consulting background, as well as the appointment of Sarah as HR and career development manager, as the company wanted to grow further and move toward service provider and solutions with higher value creation than buying off-the-shelf ready-made products and reselling them. Now the company operates globally with offices and facilities in the Middle East, US, China and across the UK, making video games and implementing theme park attractions globally. In April 2021, Alpha-z…
James Sinclair has recently graduated from college. Unable to find a job, he has decided to openhis own business. He is unsure about which form of business ownership is best for him. Whiletalking to James, you learn the following information.1. He does not have much money in the bank. He will have to start making paymentsagainst his student loans six months from now.2. He has a few friends who are also unable to find a job. Each of them has a little money.All of them are trained in the same field.3. He has a lot of good ideas about how he wants to run his business. He does not want toshare his ideas or change them, and is not sure how he will work in a team.4. He does not mind working long hours. Between school and work, he often put in 80 hoursa week when he was in college.5. James does not expect to make a huge profit in his first few years. Like most entrepreneurs,he is expecting to break even and then make a modest income. He hopes that he will makeenough to live off in the first…
If Amazon's board of directors wants management to maximize shareholder wealth, should the CEO's compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs? If it is to be based on performance, how should performance be measured? Would it be easier to measure performance by the growth rate in reported profits or the growth rate in the stock's intrinsic value? Which would be the better performance measure? Why?
The following information is available for Ubbie's Jewelry and Gift Store.Net Income $5,000Depreciation expense 2,500Increase in defered tax liabilities 500Decrease in cash 3,000Increase in marketable securities 1,000Decrease in accounts receivable 2,000Increase in inventories 9,000Decrease in accounts payable 5,000Increase in accrued liabilities 1,000Increase in property and equipment 14,000Increase in short-term notes payable 19,000Decrease in long-term notes payable 4,000Use indirect method to answer the questions.*What is net cash flow from operating activities?*What is net cash flow from investing activities?*What is net cash flow from financing activities?*What is the change in cash?
Suppose that this particular study compared a large group of individuals who play squash regularly with those of an equal-sized group who get no exercise at all. Playing squash does provide a good cardiovascular workout. However, we also know that squash players tend to be affluent enough to belong to clubs with squash courts. Wealthy individuals may have great access to health care, which can also improve cardiovascular health. If our analysis is sloppy, we may attribute health benefits to playing squash when in fact the real benefit comes from being wealthy enough to play squash (in which case playing polo would also be associ ated with better heart health, even though the horse is doing most of the work). Or perhaps causality goes the other direction. Could having a healthy heart “cause” exercise? Yes. Individuals who are infirm, particularly those who have some incipient form of heart disease, will find it much harder to exercise. They will certainly be less likely to play squash…
Consider an investment project with the following cash flows: N Cash Flow 0 -$5,0001 $02 $4,8403 $1,331ComputcthelRRforthisinvestment.lsthisprojectacceptablcatMARR = 10%?
I. To make goal setting effective and worthwhile, the goals should be specific, objective and verifiable. II. In conservative strategy, credit sales decrease, collection rate increase, AR balance decrease, bad debts decrease and collection expense decrease.III. The indispensable 5Cs of credit shall be followed in credit policy. What statement(s) is/are true? A. I, II, III B. I, II C. I, III D. II, III E. Only I F. Only II G. Only III H. None

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS