Espresso Express operates a number of espresso coffee stands In busy suburban malls. The fixed weekly ex $1.500 and the varlable cost per cup of coffee served is $0.67 Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffe activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of week increases? Complete this question by entering your answers in the tabs below.

Espresso Express operates a number of espresso coffee stands In busy suburban malls. The fixed weekly ex $1.500 and the varlable cost per cup of coffee served is $0.67 Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffe activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of week increases? Complete this question by entering your answers in the tabs below.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How can resolve this problem Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $500 and the variable cost per cup of coffee served is $0.61. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Cups of Coffee Served in a Week 1,700 1,800 1,900 Fixed cost Variable cost Total cost $0 $0 $0 Average cost per cup of coffee served
ANSWER QUESTIONS 3&4 ONLY!!! Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $54 $12 Unit variable cost $11 $9 Direct fixed cost $20,800 $41,000 Common fixed selling and administrative expenses total $84,000. Required: 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ____2___ : ____3______ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans 3070 Break-even table fans 4605 3. Prepare a contribution-margin-based income statement for Vandenberg, Inc.,…
!only solve step d. ! Top-of-the-Line Company sells bicycles helmets and scooter helmets. The bicycle helmets are priced at $90 and have variable costs of $70 each. The scooter helmets are priced at $140 and have variable costs of $95 each. The total fixed cost for the company as a whole equals $200,000 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Top-of-the-Line expects to sell 8,000 bicycle helmets and 2,000 scooter helmets. a. Calculate the sales mix in percentages for the bicycle helmet and the scooter helmet. Bicycle Helmet Scooter Helmet Unit sold: 8,000 Unit sold: 2,000 Sales mix in percentage: 80% sales mix in percentage: 20% b. Calculate the contribution margin for each product and the contribution margin for the two…
[Question 2] Whittier Company plans to sell 1,000 mowers at $400 each in the coming year.Total variable expense per unit is $325. Total fixed expense is $45,000.Required:1. Calculate the sales revenue and units that Whittier Company must make to breakeven. 2. Check your answer by preparing a contribution margin income statementbased on the break-even point calculated. 3. Find the new break units and sales even under the following conditions i. sales price increase by 25 % ii. variable expenses reduced by $25 iii. Fixed cost has increased by 20 %
Practice 3: Bob Company, a sole proprietorship, sells only one product. The regular price is $160. Variable costs are 55% of this selling price, and fixed costs are $8,400 a month. Management decides to decrease the selling price from $160 to $145 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. At the original selling price of $160 a unit, what is the contribution margin ratio? ________% At the original selling price of $160 a unit, what dollar volume of sales per month is required for Bob Company to break-even? (Round your answer to the nearest whole dollar.) $________ At the original selling price of $160 a unit, what dollar volume of sales per month is required for Bob Company to earn a monthly operating income of $6,500? (Round your answer to the nearest whole dollar.) $________ At the reduced selling price of $145 a unit, what is the contribution margin ratio? ________% At the reduced selling…
Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $135,300 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 16,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $80,000 per month?
8. Assume instead of one product (the Ripped Pig sandwich), Cat & Joe’s Pig Rig served three items: 1. the Ripped Pig sandwich, which sells for $12 and had variable costs of 40% of sales price; 2. the Pork Taco, which sells for $9 and had variable costs of 35%; and 3. the Mac and Cheese Pulled Pork, which sells for $12 and had variable costs of 50%. Fixed costs were expected to remain at $10,000 per year (180 operational days) and income taxes were expected to be 20%. On a typical day, Cat and Joe would serve a total of 125 customers. The sales mix is as follows: 25 customers would order Mac and Cheese Pulled Pork, 25 would order Pork Tacos, and 75 would order the Ripped Pig sandwich. 8a) Complete an analysis showing the financial results for the above scenario. (Layout the revenue, variable cost and contribution margin for each item).
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22.Required:1. Fill in the following table with your estimates of the company’s total cost and average cost per cup of coffee at the indicated levels of activity. Round off the average cost per cup of coffee to the nearest tenth of a cent. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Explain.
Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove total $108,000 per month.Required:1. What is the break-even point in unit sales and in dollar sales?2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? Why? (Assume that the fixed expenses remain unchanged.)3. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions,and one as operations would appear after the proposed changes. Show both total and per unit data on your statements.4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price…
Please assit with part d (bold below)of this practive problem: Practice 2: Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis: Selling Contribution Price Margin Cat food $40 $16 Dog food $30 $9 The total monthly sales revenue required to break-even is $________. (Rounded) The total monthly sales revenue required to earn an operating income of $135,000 is $________. The company's margin of safety at a monthly sales level of $2,500,000 is $________. Pet Park is trying to improve its market position with respect to dog food and would ideally like to become more competitive in this area. They have the opportunity to invest in a piece of equipment (cost: $3,000,000, useful life is 5 years with no salvage…
Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sellsfor $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove total$108,000 per month.Required:1. Compute the break-even point in number of stoves and in total sales dollars.2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher ora lower break-even point? Why? (Assume that the fixed expenses remain unchanged.)3. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Preparetwo contribution format income statements, one under present operating conditions, and one asoperations would appear after the proposed changes. Show both total and per unit data on yourstatements.4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling…
Pleas assist with par f (bold below) Practice 3: Bob Company, a sole proprietorship, sells only one product. The regular price is $160. Variable costs are 55% of this selling price, and fixed costs are $8,400 a month. Management decides to decrease the selling price from $160 to $145 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. At the original selling price of $160 a unit, what is the contribution margin ratio? ________% At the original selling price of $160 a unit, what dollar volume of sales per month is required for Bob Company to break-even? (Round your answer to the nearest whole dollar.) $________ At the original selling price of $160 a unit, what dollar volume of sales per month is required for Bob Company to earn a monthly operating income of $6,500? (Round your answer to the nearest whole dollar.) $________ At the reduced selling price of $145 a unit, what is the contribution margin…