Answer 4,5,6 Ms. Magan Dah and her sister, Ms. Supla Dah got into thecakes and pastries business almost by accident. Magan, aBSHRM graduate, often bake cakes as gifts for friends.Occasionally, they would set up a booth at a trade fair andsell a few of the cakes. The day came when a buyer for amajor department store offered them a contract to produce1,500 cakes of various flavors for $10,000. The sistersrealized that it was time to get down to business. To makebookkeeping simpler, they have priced all the cakes at $8.Variable cost per unit is $6 and they have to rent a facility for$4,000 a month.1) Calculate the breakeven.2) Calculate their COGS on the department store order.3) Calculate their Operating Ex enses on the departmentstore order.4) Calculate their EBIT on the department store order. 5) If Supla Dah renegotiates the contract at a price of $10 percake, compute for total variable cost.6) If Supla Dah renegotiates the contract at a price of $10 percake, compute for total fixed cost.7) If Supla Dah renegotiates the contract at a price of $10 percake, compute for EBIT.8)lf the store refuses to pay more than $8.00 per unit but iswilling to negotiate quantity, welmat quantity of cakes willresult to an EBIT of $4,000?

The Operating Income is calculated by deducting the variable or fixed cost form the Sales Value. The…

5) If Supla Dah renegotiates the contract at a price of $10 per cake, compute for total variable cost. 6) If Supla Dah renegotiates the contract at a price of $10 per cake, compute for total fixed cost.

5) If Supla Dah renegotiates the contract at a price of $10 per cake, compute for total variable cost. 6) If Supla Dah renegotiates the contract at a price of $10 per cake, compute for total fixed cost.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 64DNC

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Ms. Magan Dah and her sister, Ms. Supla Dah got into the cakes and pastries business almost by accident. Magan, a BSHRM graduate often bake cakes as gifts for friends: Occasionally, they would set up a booth at a trade fair and sell a few of the cakes. The day came when a buyer for a major department store offered them a contract to produce 1,500 cakes of various flavors for $10.000. The sisters realized that it was time to get down to business. To make bookkeeping simpler, they have priced all the cakes at $8 Variable cost per unit is $6 and they have to rent a facility for $4,000 a month. 1) Calculate the breakeven. 2) Calculate their COGS on the department store order. 3) Calculate their Operating Expenses on the department store order 4) Calculate their EBIT on the department store order.
Ms. Magan Dah and her sister, Ms. Supla Dah got into the cakes and pastries business almost by accident. Magan, a BSHRM graduate often bake cakes as gifts for friends: Occasionally, they would set up a booth at a trade fair and sell a few of the cakes. The day came when a buyer for a major department store offered them a contract to produce 1,500 cakes of various flavors for $10.000. The sisters realized that it was time to get down to business. To make bookkeeping simpler, they have priced all the cakes at $8 Variable cost per unit is $6 and they have to rent a facility for $4,000 a month 4) Calculate their EBIT on the department store order. 8)If the store refuses to pay more than $58.00 per unit but is willing to negotiate quantity, what quantity of cakes will result to an EBIT of $4,000?
Ms. Magan Dah and her sister, Ms. Supla Dah got into the cakes and pastries business almost by accident. Magan, a BSHRM graduate often bake cakes as gifts for friends: Occasionally, they would set up a booth at a trade fair and sell a few of the cakes. The day came when a buyer for a major department store offered them a contract to produce 1,500 cakes of various flavors for $10.000. The sisters realized that it was time to get down to business. To make bookkeeping simpler, they have priced all the cakes at $8 Variable cost per unit is $6 and they have to rent a facility for $4,000 a month. (Questions) 5) If Supta Dah renegotiates the contract at a price of $10 per cake, compute for total variabile cost 6) If Supla Dah renegotiates the contract at a price of $10 per cake, compute for total fixed cost. 7) If Supla Dah renegotiates the contract at a price of $10 per cake, compute for EBIT 8)If the store refuses to pay more than 58.00 per unit but is willing to negotiate quantity, what…
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