A school is raising money to buy robes. Cost is $8,000. Raffle tickets are sold for $10. Variable cost is $2 and fixed cost is$8,000. Determine sales volume required for target income.
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A school is raising money to buy robes. Cost is $8,000. Raffle tickets are sold for $10. Variable cost is $2 and fixed cost is$8,000. Determine sales volume required for target income.
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- Tiny Tots Daycare Centre provides daycare for children Mondays through Fridays. The business had $140,000 of net income in 2015, when 50 students were enrolled and data for variable costs per child and total fixed costs were as follows: CostSchedule : Variable Costs: Lunch & snacks $1,000 Education Supplies 750 Other supplies (toiletries etc.) 250 $2,000 Fixed Costs: Rent $20,000 Utilities 3,000 Insurance 3,000 Salaries 30,000 Miscellaneous 4,000 $60,000 Required: a) Compute the charge per child, using the equation method. b) What is the contribution per child? What is the contribution margin ratio? c) Calculate Tiny Tot’s break-even point in number of children and in sales dollars. d) Calculate the margin of safety in number of children and sales dollars. e) Given the expected enrolment of 50 children, prepare a contribution margin…Tiny Tots Daycare Centre provides daycare for children Mondays through Fridays. The business had $140,000 of net income in 2015, when 50 students were enrolled and data for variable costs per child and total fixed costs were as follows: CostSchedule : Variable Costs: Lunch & snacks $1,000 Education Supplies 750 Other supplies (toiletries etc.) 250 $2,000 Fixed Costs: Rent $20,000 Utilities 3,000 Insurance 3,000 Salaries 30,000 Miscellaneous 4,000 $60,000 Assume that Tiny Tots target operating income is $156,000 per month. Calculate the number of children that must be enrolled for this goal to be realized. Is this a realistic goal? Tiny Tots lost its lease and had to move to another building. Monthly rental for the new building is $28,000. At the suggestion of the parents, Tiny Tots plans to take the children on outings. Monthly cost for the outing is $10,000. By how much should…Tiny Tots Daycare Centre provides daycare for children Mondays through Fridays. The business had $140,000 of net income in 2015, when 50 students were enrolled and data for variable costs per child and total fixed costs were as follows: CostSchedule : Variable Costs: Lunch & snacks $1,000 Education Supplies 750 Other supplies (toiletries etc.) 250 $2,000 Fixed Costs: Rent $20,000 Utilities 3,000 Insurance 3,000 Salaries 30,000 Miscellaneous 4,000 $60,000 Required: d) Calculate the margin of safety in number of children and sales dollars. e) Given the expected enrolment of 50 children, prepare a contribution margin income statement for the year ended December 31, 2015, detailing the components of total fixed costs, and clearly showing contribution and operating income. f) Assuming that normal enrollment at the Daycare Centre is 50 children; construct a…
- Tiny Tots Daycare Centre provides daycare for children Mondays through Fridays. Thebusiness had $140,000 of net income in 2015, when 50 students were enrolled and data forvariable costs per child and total fixed costs were as follows:Cost Schedule:Variable Costs: Lunch & snacks $1,000Education Supplies 750Other supplies (toiletries etc.) 250$2,000Fixed Costs: Rent $20,000Utilities 3,000Insurance 3,000Salaries 30,000Miscellaneous 4,000$60,000Required:d) Calculate the margin of safety in number of children and sales dollars.e) Given the expected enrolment of 50 children, prepare a contribution margin incomestatement for the year ended December 31, 2015, detailing the components of totalfixed costs, and clearly showing contribution and operating income.f) Assuming that normal enrollment at the Daycare Centre is 50 children; construct abreak-even chart, clearly showing the break-even point in units and sales dollars andthe margin of safety in units and in sales dollars.g) Assume that…For a Spring Sale event, a buyer plans to purchase 250 floral print dresses to retail for $79.99 each. A 56% markup is needed on the total purchase. From one of the buyer’s best resources, 110 dresses were purchased that cost $37.50 each. The buyer knows, however, that the costs will have to be averaged on the balance of other purchases from alternate resources in order to achieve a 56% markup on the entire group. a. What must be the average cost per dress on the balance of the purchases if the buyer is to attain the planned markup percentage? b. What markup percentage did the buyer attain on the first purchase of 110 dresses? c. What markup percentage did the buyer have to get on the balance of the purchases to realize the overall needed markup? Please show all work! There are two other versions of the problem posted that are both done wrong. Please help!!The West Indies School Book Shop sells T Shirts emblazoned with the school’s name and logo. Theshirts cost $2,000 each and management estimates that 900 T Shirts will be sold during each month ofthe year. The annual holding cost for a unit of that inventory is estimated to be 1.5% of the purchaseprice. It costs the Book Shop $500 to place a single order.The maximum sale for the Book Shop for any one week is 300 shirts and minimum sales 150shirts. The supplier takes anywhere from 2 to 4 weeks to deliver the merchandise after the order isplaced.i) Determine the highest number of shirts that should be purchased by the Gift Shop in order tominimize stock administration cost.ii) What is the total stock administration costs?iii)Using the EOQ policy, determine the re-order level, minimum inventory level and maximuminventory level for the T Shirts.
- A publisher has a fixed cost of $175,000 associated with the production of a college mathematics book. The contribution to profit and fixed cost from the sale of each book is $6.75. i) Determine the number of books which must be sold in order to break even. ii) What is the expected profit if 65,000 books are sold?Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising costs are $100,000 this year, and departmental sales for this year follow. How much advertising cost is allocated to each department if the allocation is based on departmental sales?Southwestern Freight Forwarders is planning to hold a fundraising event to build an elementary school according to the company’s corporate social responsibility targets, at one of the local country It has two options for the event: OPTION 1: Crestview Country Club Fixed rental cost of $1,000 $12 per person for food OPTION 2: Tallgrass Country Club Fixed rental cost of $3,000 A caterer who charges $8.00 per person for food Southwestern Freight Forwarders has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band which will cost another $1,200. Tickets are expected to be $30 per person. Local freight business supporters will donate any other items required for the event. Which option provides the least amount of risk? Which option provides the greatest operating income if 600 people attend? Which option provides the greatest degree of operating leverage if 600 people attend? Which option would you choose? Why?
- Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. The following is her forecasted income statement for April, when she expects to produce and sell 2,000 meals: Amount Per Unit Sales revenue $ 10,000 $ 5.00 Costs of meals produced 8,000 4.00 Gross profit $ 2,000 $ 1.00 Administrative costs 1,000 0.50 Operating profit $ 1,000 $ 0.50 Fixed costs included in this income statement are $2,800 for meal production and $400 for administrative costs. Maria has received a special request from an organization sponsoring a picnic to raise funds for the Special Olympics. This organization is willing to pay $3.00 per meal for 300 meals on April 10. Maria has sufficient idle capacity to fill this special order. These meals will incur all of the variable costs of meals produced, but variable administrative costs and total fixed costs will not be affected. Required: a. What…The business manager of an RSO has a choice of purchasing T-shirts for 500 students from two suppliers. Alpha T offers the shirt to be acquired at P300 each with print 500 pieces and silk screen cost of P1,000 for 500 pieces. If the RSO will buy less than 500 pieces, it will be charged at P315each. Beta T, another supplier offers the T-shirt at P187 each, charges printing at P10,000 at a higher level of printing technology for every 300 pieces, and P75/shirt for ink and labor. Record shows that sales come from 75% of the students buy T-shirts. If only 80% of the students are targeted to serve, which supplier will you choose? a) Alpha T b) Beta T c) Either of the two supplier d) none of the supplierABC operates a consignment shop where she sells clothes for women and children. The average number of consignments sold per month is 1,000. The average material cost and the selling price of each consignment are $8 and $20, respectively. The monthly fixed costs to run this business are given below: Rental cost: $750Utilities: $150Advertising: $35Insurance: $100Labor cost: $4,000 Using Excel spreadsheet / worksheet, determine Anna's profit. Attach excel solution.
