5. The owner of Big Burger Restaurant wants to determine the unit cost associated with their 10,000 sales of burgers for January 201A. The variable expenses per burger: The fixed expenses are as follows: P5,500 2,500 P5.50 Labor Burger patty Bread 2.00 Rent Ketchup 0.50 Insurance 500 6.00 0.50 P14.50 Advertising 2,000 4,800 P15,300 Lettuce Mayonnaise Utilities Total variable cost Total fixed cost

5. The owner of Big Burger Restaurant wants to determine the unit cost associated with their 10,000 sales of burgers for January 201A. The variable expenses per burger: The fixed expenses are as follows: P5,500 2,500 P5.50 Labor Burger patty Bread 2.00 Rent Ketchup 0.50 Insurance 500 6.00 0.50 P14.50 Advertising 2,000 4,800 P15,300 Lettuce Mayonnaise Utilities Total variable cost Total fixed cost

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 4MCQ

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Similar questions

Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
One of the products that Justine Corporation sells is “Extra Soft” floor mats. Justine’s ordering costs related to the mat is P12.50 per order. The cost of carrying one mat for one year is P16.00. Justine sells 40, 000 of these mats evenly throughout the year. 1. If, instead of following the EOQ, the company decided to place an order of 200 units per order, how much will be the total inventory cost?
A merchandising company sells a particular product that is estimated to have approximately 1,500 sales this year. The purchasing department estimates that it will cost approximately $200 to place an order for this product: $180 fixed and $20 variable. The total annual carrying cost for this product is $1,500. What is the product’s EOQ? A. 775 B. 19 C. 735 D. 20
Give what is being asked?1. If total cost and Expenses is P300,000 at breakeven point how much is the total sales?2. The unit selling price of a product is P20, if the total sales for the month is 5,000 units and this is the breakeven point sales volume.Answer question A-C with yes or no.a. Will there be an income in case 6,000 units were sold?b. Will be there be an income in case 4,000 units were sold?.c. If additional units were sold after selling 5,000 units will there be an income?d. How much is the total cost and expenses if 5,000 units were sold?
The following is Cullumber Company’s income statement for the past year. Sales revenue $336,000 Cost of goods sold 134,400 Gross margin 201,600 Operating expenses 145,600 Operating income $56,000 If the company wants to sell a new product that costs $49 wholesale while keeping the same markup structure, what will be the price of the new product? (Use the gross margin percentage and round final answer to 2 decimal places, e.g. 25,124.25.) Price of the new product $enter the price of the new product in dollars rounded to 2 decimal places
Assume the total monthly operating costs of a Hardee’s restaurant are: $35,000 + $0.75Xwhere X = Number of burgers ordered Determine the average cost per burger if the monthly volume of burgers ordered is 20,000.
The company that sells chicken snack boxes for $3.50 each has fixed costs of $800 per day and variable costs of $1.50 for each chicken snack box. (a) Write down the equation for (i) total revenue, (ii) total costs, (iii) profit. (b) Calculate the number of chicken snack boxes that must be produced and sold if the company is to break even.
Sammy Co. currently sells 1,000 units of product M for P2 each. Variable costs are P1.50. A discount store has offered P1.70 per unit for 400 units of product M. The managers believe that if they accept the special order, they will lose some sales at the regular price. Determine the number of units they could lose before the order become unprofitable
Tony’s is a Pizzeria located near a local university. The restaurant not only sells two types of pizza: Thin Crust and Deep Dish, but also sells Pasta. Information relating to the three products for the next month follows: Thin Crust Deep Dish Pasta Expected sales (units) 1,000 400 200 Sales price $15 $20 $12 Variable cost $6 $8 $5 The company has monthly fixed costs of $10,000 and a tax rate of 20%. Required: a. Compute the company’s expected profit (net income) for the upcoming fiscal period. b. Compute the company’s sales mix. (Note Solve the normal way c. Assuming a consistent sales mix, how many units of each product type must the company sell to break even? d.Assuming a consistent sales mix, if the company wishes to earn monthly net income of $25,000, how many units of each product type must be sold? e. Compute the margin of safety in both dollar and percentage terms.
Atlantis Company is placing an ad in the local paper to advertise its products . The ad will run for one week at a total cost of P5,500. Atlantis Company has four categories of products as follows: Product category % of floor space Expected sales occupied value A 20 P35,000 1515,000 45 64,500 D 2025,500 What amount of advertising cost should be allocated to product category A, assuming Atlantis allocates based on percent of floor space occupied ?