Problem 1 Old Burnside Ice Company supplements its ice business by producing beer. There are four people directly involved in beer production: two brewmasters, an assistant and a bottler. In addition, a buyer and a marketer/seller work full time on beer, and four delivery people work 75% of the time delivering beer and the balance of the time delivering ice. If Old Burnsides beer sales were $120,000 for October, the sales per person for October in the Brewery value stream are:
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- Exercise #2 Monokubs produces frozen gourmet vegetarian pizzas. The following information is available: Electricity bills show electricity costs of $3,000 per month plus an average of $0.02 per pizza. Payroll records show that supervisory salaries total $8,000 per month. Wage records show that wages and on-costs for production employees are $0.05 per pizza. Inspection of several invoices from ingredient suppliers indicate that the ingredients per pizza cost on average $1.90. Depreciation schedules show that the monthly depreciation on factory building and equipment is $21,000. Required: Classify the costs in terms of variable, semi-variable and fixed costs, and form a cost function used to calculate monthly production cost. Assume that 7,500 pizzas will be manufactured next month. Predict the production cost for next month.Question 2 The kopitiam restaurant is open 24 hours a day and serves breakfast,lunch ,and dinner.The owner of the business has determined that fixed costs are RM24,000 per month.variable costs are estimated at RM9.60 per meal.The average total bill (excluding tax and tip) is $15 per customer. a) compute the break -even point in meals and volume in dollars. b) compute the number of meals that must be served if leeAnn family restaurant wishes to earn a profit of RM10,000 c) Assume that fixed costs increase to RM30,000. How many additional meals must be served if the restaurant wishes to earn the same profit?Ay 1. Please show me the step by step and the formula Question 1: Keri Weinberg earns both $10/hour, $10 for every sale of Product A, and $14 for every sale of Product B. During the most recent week, she worked 54 hours and sold 26 units of Product A and 41 units of Product B. Question 2: Samuel Worthy earns both $7.25/hour and a 10% commission on all sales. During the most recent week, he worked 42 hours and made total sales of $11,000.
- Sunland Horticulture provides and maintains live plants in office buildings. The company's 884 customers are charged $37 per month for this service, which includes weekly watering visits. The variable cost to service a customer's location is $17 per month. The company incurs $2,194 each month to maintain its fleet of four service vans and $3.004 each month in salaries. Sunland pays a bookkeeping service $2 per customer each month to handle all invoicing and accounting functions A.) picture one B.) What is the expected monthly operating income if 174 customers are added? Operating income $________ C.) second picture7. At Aspen Trucking Company, the average driver out of its 200 driver employees travels 1,600 miles per week (50 weeks per year) and it charges customers $2.15 per mile. Aspen provides each driver a $95,000 big rig and pays the driver $0.58 per mile. It estimates that the direct cost, other than the driver, for operating a truck is $0.75 per mile. Jack, the sales manager has been working on several ways to grow the revenue of the business by 10%. Since he has had to turn away business, Jack has now decided that the best way to do that is a combination of adding drivers and equipment along with a price increase of 2.5% next year. He knows that a first time driver will only be 75% productive in his or her first year and it will cost $5,500 to recruit each one. Assuming he can get all needed drivers hired by the first working day of the year, what will Aspen’s first year approximate cash flow be from this growth initiative? Please solve with excel. Group of answer choices a.…Problem 2Cove’s Cakes is a local bakery. Price and cost information follows: see image Required:2. Assume that Cove sold 465 cakes last month. Calculate the company’s degree of operating leverage.3. Using the degree of operating leverage, calculate the change in profit caused by a 15 percent increase in sales revenue
- 4.[EXCEL] Operating cycle: Lilly’s Bakery distributes its products to more than 75 restaurants and delis. The company's average collection period is 27 days, and it keeps its inventory for an average of four days. What is Lilly's operating cycle?Question 2Coffee works Limited manufactures coffee machines for domestic use. The management of the company is considering next year’s production and has asked you to help with certain financial decisions. The following information is available:Selling price (per machine) £80Direct materials (per machine) £25 Direct labour (per machine) £20 Fixed production overheads £270,000 per year.The company is planning to manufacture 15,000 coffee machines next year.(a) calculate the marginal cost per coffee machine(b) calculate the absorption cost per coffee machine (c) prepare a statement of profit or loss (under marginal and absorption costing method) to show the profit or loss if 15,000 coffee machines are soldQuestion 6.3 Dad’s Diner is a fast-food restaurant that sells burgers and hot dogs in a 1960s environment. The fixed operating costs of the company are $5,000 per month. The controlling shareholder, interested in product profitability and pricing, wants all costs allocated to the burgers and hot dogs. The following information is provided for the operations of the company: Burgers Hot Dogs Sales for March 4,000 2,400 Sales for April 6,400 2,400 Required What amount of fixed operating costs is assigned to the burgers and hot dogs when actual sales are used as the allocation base for March? For April? Hot dog sales for March and April…
- 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 value) that would reduce variable costs of manufacturing the dog…Olin Company manufactures and distributes carpentry tools. Production of the tools is in the mature portion of the product life cycle. Olin has a sales force of 20. Salespeople are paid a commission of 7 percent of sales, plus expenses of 35 per day for days spent on the road away from home, plus 0.50 per mile. They deliver products in addition to making the sales, and each salesperson is required to own a truck suitable for making deliveries. For the coming quarter, Olin estimates the following: On average, a salesperson travels 6,000 miles per quarter and spends 38 days on the road. The fixed marketing and administrative expenses total 400,000 per quarter. Required: 1. Prepare an income statement for Olin Company for the next quarter. 2. Suppose that a large hardware chain, MegaHardware, Inc., wants Olin Company to produce its new SuperTool line. This would require Olin Company to sell 80 percent of total output to the chain. The tools will be imprinted with the SuperTool brand, requiring Olin to purchase new equipment, use somewhat different materials, and reconfigure the production line. Olins industrial engineers estimate that cost of goods sold for the SuperTool line would increase by 15 percent. No sales commission would be incurred, and MegaHardware would link Olin to its EDI system. This would require an annual cost of 100,000 on the part of Olin. MegaHardware would pay shipping. As a result, the sales force would shrink by 80 percent. Should Olin accept MegaHardwares offer? Support your answer with appropriate calculations.The Operating Cycle Two Wheeler Cycle Shop buys all of its bikes from one manufacturer, Baxter Bikes. On average, bikes are on hand for 45 days before Two Wheeler sells them. The company sells some bikes for cash but also extends credit to its customers for 30 days. Required On average, what is the minimum length of Two Wheelers operating cycle? the maximum length? Explain why the operating cycle for Baxter, the manufacturer of the bikes, would normally be longer than that of Two Wheeler, the retailer.