Mary Smith owns and operates BlossomCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $760,000 Variable expenses 570,000 Contribution margin 190,000 Fixed expenses 105,000 Operating income $85,000
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- Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $840,000 Variable expenses 630,000 Contribution margin 210,000 Fixed expenses 112,000 Operating income $ 98,000 a.What is FirstCakes' contribution margin per unit? b.What is FirstCakes' monthly breakeven point in units? c.What is FirstCakes' contribution margin ratio? d.What is FirstCakes' monthly breakeven point in sales dollars?Julianna Abdallah owns and operates FirstCakes, a bakery that creates personalized birthday cakes for a child’s first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical month’s results are as follows: Sales revenue $749,280 Variable expenses 561,960 Contribution margin 187,320 Fixed expenses 133,000 Operating income $ 54,320 How many cakes will Julianna Abdallah have to sell if she wants to earn $171,654 in operating income each month? cakes LINK TO TEXT LINK TO VIDEO Assuming a 30% tax rate, how many cakes will Julianna Abdallah have to sell if she wants to earn $74,284 in net income each month? (Round answer to 0 decimal places, e.g. 5,275.) cakesABC 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.
- Amber, owner of Amber’s Flowers and Gifts, produces gift baskets for various special occasions. Each giftbasket includes fruit or assorted small gifts (e.g., a coffee mug, deck of cards, novelty cocoa mixes, scentedsoap) in a basket that is wrapped in colorful cellophane. Amber has estimated the following unit sales of thestandard gift basket for the rest of the year and for January of next year.September 260October 250November 270December 350January 170Amber likes to have 5% of the next month’s sales needs on hand at the end of each month. This requirement was met onAugust 31. Two materials are needed for each fruit basket:Fruit 2 poundsSmall Gifts 4 itemsThe materials inventory policy is to have 5% of the next month’s fruit needs on hand and 30% of the next month’sproduction needs of small gifts. (The relatively low inventory amount for fruit is designed to prevent spoilage.) Materialsinventory on August 31 met this company policy.1. Prepare a production budget for September,…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 4, 000 meals: Amount Per Unit Sales revenue $ 28,000 $7.00 costs of meals produced 20,000 5.00 Gross Profit $ 8,000 $ 2.00 Administrative costs 3,200 .08 Operating profit $ 4,800 $ 1.20 Fixed costs included in this income statement are $6,400 for meal production and $800 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 $4.00 per meal for 300 meals on April…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…
- Mr. John Villamin wanted to sell cupcakes to his friends. He spends Php 22.50 per cupcake with corresponding mark up of 140%. For the month of February 2022, he sold 100 pcs on the 1st 15 days of the month, and 125 pcs on the remaining days of the month. Other expenses are 10% of the total ingredients cost. How much is the income or loss of Mr. Villamin for the month of February 2022 (indicate if income or loss and show your computation)?The Happy Toddlers (THT) is a preparatory school for children three to five years old. There are ten teachers employed by THT: five senior teachers with a salary of P30, 000 a month and five junior teachers at P18, 000 a month. There are also four administrators with average monthly salary of P35, 000. Anual depreciation for furniture and fixtures amounted to P100, 000. Utilities starting operation totals P200, 000. Examine and list down the expenses of THT as of December 31 by nature. Which type of expense is the highest or lowest? If the owner of THT consulted you on minimizing expenses and maximizing profit, what would you recommend?The Happy Toddlers (THT) is a preparatory school for children three to five years old. There are ten teachers employed by THT: five senior teachers with a salary of P30, 000 a month and five junior teachers at P18, 000 a month. There are also four administrators with average monthly salary of P35, 000. Anual depreciation for furniture and fixtures amounted to P10, 000. Utilities starting operation totals P200, 000. Examine the list down the expenses of THT as of December 31 by nature. Which type of expenses is the highest or lowest? If the owner of THT consulted you on minimizing expenses and maximizing profit, what would you recommend?
- Susan Wilson sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $ 160,000 Cost of goods sold (all variable) 100,000 Gross margin 60,000 Selling expenses (75% variable) 12,000 Administrative expenses (25% variable) 20,000 Operating income $ 28,000 (a) Prepare a contribution format income statement for Susan. (Round answers to 0 decimal places, e.g. 5,275.) select an income statement item $enter a dollar amount select an opening name for section one : select an income statement item $enter a dollar amount select an income statement item…Betta Jets, a toy wholesaler, is hoping to expand into manufacturing its own products. The business owners have provided you with the following information: All sales are on credit. The company collects 70% in the month following the sale and 30% two months following the sale. All purchases of stock are paid for one month after the purchase. Equipment costing $250,000 is expected to be acquired and paid for in July. The selling and distribution expenses are $48 000 each month. Administrative expenses are $42 000 per month. This includes $5 000 of depreciation expense. Selling Expenses and Administrative Expenses are paid in the month they are incurred. The cash balance on 1 July 2022 is $28 000. The following sales and purchases data in 2022 have been compiled for the preparation of the budget: April May June July $ $ $ $ Purchases 300 000 360 000 340 000 400 000 Sales 800 000 860 000 840 000 880 000 REQUIRED: Prepare…Banner House Inc. gives all its sales people a base salary of $37,000 per annum and a commission of 15% on all banners that they sell over $4,000. Calculate Jenna's salary last month if he sold $8,000 worth of banners.