Based on the above information, give the total variable cost for each unit. Complete the profit formula for Lolly's Lollipops. How many units would Lolly have to sell to breakeven? If Lolly wanted to have a Margin of Safety of 25%, how many units would she need to sell?

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
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Below is a list for Lolly's Lollipops expenses for the first half of 2023. Lolly sells each unit
for $13.
Expenses
Revenue
Direct
Mat
Direct Lab
Sales
Wages
Rent
Office
Wages
Feb
333,619 193,986
20,000
20,000
Jan
78,000
78,000
83,405 48,497
75,043
33,362
54,098
19,399
Mar
226,434
20,000
78,000
56,609
Apr
154,271
20,000
78,000
38,568
58,965 48,141
22,643
15,427
May
Jun
180,869 142,506
20,000
20,000
78,000
45,217
78,000
35,627
52,130 46,376
18,087
14,251
Transcribed Image Text:Below is a list for Lolly's Lollipops expenses for the first half of 2023. Lolly sells each unit for $13. Expenses Revenue Direct Mat Direct Lab Sales Wages Rent Office Wages Feb 333,619 193,986 20,000 20,000 Jan 78,000 78,000 83,405 48,497 75,043 33,362 54,098 19,399 Mar 226,434 20,000 78,000 56,609 Apr 154,271 20,000 78,000 38,568 58,965 48,141 22,643 15,427 May Jun 180,869 142,506 20,000 20,000 78,000 45,217 78,000 35,627 52,130 46,376 18,087 14,251
a) Based on the above information, give the total variable cost for each unit.
b) Complete the profit formula for Lolly's Lollipops.
c) How many units would Lolly have to sell to breakeven?
d) If Lolly wanted to have a Margin of Safety of 25%, how many units would she need to
sell?
Transcribed Image Text:a) Based on the above information, give the total variable cost for each unit. b) Complete the profit formula for Lolly's Lollipops. c) How many units would Lolly have to sell to breakeven? d) If Lolly wanted to have a Margin of Safety of 25%, how many units would she need to sell?
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