Pulkit animal care society operates as a NPO providing veterinary services. AS a Non-profit it refers excess of revenue over cost as surplus and cost of excess of cost over revenue as a deficit. Pulkit animal care society charges Rs 250 per service. The variable cost of a service on an average is Rs 50.Fixed costs are Rs 1.2 lakh annually. a. What is the break-even point for Pulkit Animal Care society? b. Pulkit Animal care Society expects 1000 animal visits this year. Will it operate at a surplus or deficit?
Q: Sandhill Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of…
A: The net income is calculated as excess of service revenue over costs incurred.
Q: Joyful Journeys Music School provides private music lessons for elementary students. Its operating…
A: Break even point is calculated as ratio of fixed costs and contribution margin
Q: a. Alliance Sdn. Bhd. has offered to purchase 5,000 units of Champ if Excell Bhd. willing to accept…
A: First lets find out the normal profit of the Excel Bhd in normal years before the pandemic:-…
Q: General Hospital, a not-for-profit acute care facility, has the following cost structure for its…
A: Answer and calculations are given below
Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…
A: Break Even Point: Break Even Point is defined as the level where there is no profit and loss. It is…
Q: A manufacturer of vertical blinds purchases raw materials for $17.00 per set of blinds and has a…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Wheels N Cogs is a small business that designs gear for a variety clients including those that…
A: Contribution margin per gear = Sales price - variable cost per gear = $9.34 - 1.72 = $7.62 per gear
Q: Gypsy Joe’s operates a chain of coffee shops. The company pays rent of $10,000 per year for each…
A: Rent and salary of manager is a Fixed cost, since they dont change with change in production volume…
Q: Hammerhead Charters runs fishing trips out of the local port. Hammerhead charges $90 per trip for a…
A: At break even point , cost of a product equals the revenues of the product. Break Even Point =…
Q: JVA store serves an approximate 1,200 customers annually. These are the breakdown of its customers:…
A: Annual market size refers to the amount of total revenue generated by an entity in the market. It is…
Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…
A: Break Even Point: Break Even Point is defined as the level where there is no profit…
Q: GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for…
A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…
Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge…
A: Total Cost is that Cost which incurred in production of any product It’s Include Variable Cost &…
Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a…
A: The high low method is used to find the fixed cost and variable cost from the mixed cost.
Q: the monthly sales volume needed to break even. (b) NPWRC president is negotiating for a sole-source…
A: Given :- Average monthly fixed cost = $900 per site The marginal cost of purifying = 8% per gallon…
Q: to the original data. If the store manager were paid $5.30 per unit sold in addition to her current…
A: The details of fixed and variable cost for Aviator Station Inc. is given in the question. Firstly…
Q: total bill (excluding tax and tip) is $12 per customer. Assume that fixed costs increase to…
A: Let the number of meal be x. Bill amount 12.00X Less : Variable cost 9.60X Contribution 2.40X…
Q: T-shirt company has a fixed expense of 25,560 for the production of their t-shirts. They have a…
A: Unit Contribution margin = Selling price - Unit Variable cost = $22.50 - $4.50 = $18.00
Q: 1. Compute the break-even point in meals. 2. Compute the break-even volume in dollars. 3. Compute…
A: 1. Compute the break-even point in meals. Break-even point in meals = Fixed costs / Contribution…
Q: Gazapizm Corporation is a manufacturing company and has estimated that they need $2,400,000 to put a…
A: Firm requires funds for new projects or existing operations. Firm can arrange the funds through long…
Q: GEM Ltd leases a photocopy machine with terms that include a fixed fee each month plus a charge for…
A: A cost incurred in completing a job or activity may include variable costs, fixed costs and/or mixed…
Q: A manufacturer can sell a certain health supplement for P1,100 per unit. Its total cost consists of…
A: a) Break-even units: = Fixed cost/contribution per unit = Php75,000/ (Php1100 - Php440 per unit) =…
Q: To produce chewing gum, DryFruit Gum Company pays $100,000 per year for rent on a long-term lease…
A: Net Profit margin = (( Sales Revenue - Expenses)/Sales Revenue) * 100 Net profit is residual income…
Q: During each year, CSL Computer Company needs to train 27 service representatives. It costs $12,000…
A: EOQ (Economic Order Quantity) model is the inventory management concept which aims at minimizing the…
Q: Leon's bought chairs for $180 less 30% and 20%. The store's overhead is 40% of the selling price and…
A: Solution a: Cost of chair = $180 *(1-0.30) (1-0.20) = $100.80 per unit Store overhead and net profit…
Q: B& Co. sells tickets to tourists for sight visit that is arranged by a travel agency. Sight visit…
A: The break even sales are calculated as fixed cost divided by contribution margin ratio.
Q: Schoenen Motors is a small car dealership. On average it sells a car for $33,000, which it purchases…
A: Break-even refers to covering all the costs without making a profit. At break-even point company…
Q: Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in…
A: Step 1 Sales are directly correlated to the efficiency of the supply chain, so proper systematic…
Q: Appliance Store realizes a mark-up of PhP3,450 in selling TV sets. If its items are sold at a…
A: Breakeven Point: It is the point where firm is earn no profit and no loss, and total revenue earned…
Q: Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues…
A: Given: Present value of revenue =$1300Present value of cost =$1000Cost increase form $1000 to $1150
Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…
A: The Economic Profit is Calculated using the Following Formula Economic Profit= explicit Cost-…
Q: Your University magazine, The Indus Magazine, has fixed production costs of Rs.1.5 million per…
A: Break -even point is the level of activity where there is neither a profit nor a loss. In other…
Q: droppy Sdn Bhd is a company which has been selling water bottle in perth for more than 5 years. The…
A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…
Q: Hewitt Enterprises is a business that buys and sells printers at a profit and has the following…
A: Since cost assumption of the business enterprise is not mentioned. We are assuming that latest price…
Q: break-even point in units
A: Particulars Boats Globe Building Globe Sales $20,000 $80,000 Less Variable Cost $15,000 $40,000…
Q: SWA company is trying find costs of its products. Which of the following statements is true? A cost…
A: To manufacture a product there are different kind of costs are incurred by the company for example…
Q: BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. The average car…
A: An indifference point is a point where both proposals provide the same results.it is also known by…
Q: Imagine you have a business, you are selling a one of a kind gadget, the cost you incurred for the…
A: We need to find break even point Break even = Fixed cost /contribution
Q: A cafeteria which offers pastries to its customers sells them at P 60 per dozen. In p pastries, it…
A: Annual fixed cost = semi-annual fixed cost x 2 = 2400 * 2 = P4,800 Contribution margin per piece =…
Q: Klee Motors is a small car dealership. On average, it sells a car for $24 000, which it purchases…
A: The break-even point is the situation where the company is able to meet its expenses with its…
Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…
A: Compute the sales levels at which Classical Glasses would prefer to pay a fixed amount of monthly…
Q: You own and manage a yard care business in which you charge $50 per visit to care for each yard…
A: Revenue per visit to care for each yard $ 50.00 Less: Variable cost per visit to care for each…
Q: Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Super Seniors is a not-for-profit organization that provides services to senior citizens. Super…
A: Definition: Expenses: Expenses are costs incurred for the operations of a business. The costs…
Q: Pasti Berhad values, advertises and sells residential property on behalf of its customers. The…
A: Cash budget refers to an estimation of cash inflows and outflows in a business over a specified…
Q: The Houston Armadillos, a minor-league baseball team, play their weekly games in a small stadium…
A: A Profit- Volume graph is the graphical representation of the profit or losses earned with respect…
Q: Cal’s Carpentry is considering outsourcing its accountsreceivable function. Currently, Cal employs…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Diamond Boot Factory normally sells its specialty boots for $375 a pair. An offer to buy 100 boots…
A: Differential Income is Additional Income earned from accepting the special order.
Pulkit animal care society operates as a NPO providing veterinary services. AS a Non-profit it refers excess of revenue over cost as surplus and cost of excess of cost over revenue as a deficit. Pulkit animal care society charges Rs 250 per service. The variable cost of a service on an average is Rs 50.Fixed costs are Rs 1.2 lakh annually.
a. What is the break-even point for Pulkit Animal Care society?
b. Pulkit Animal care Society expects 1000 animal visits this year. Will it operate at a surplus or deficit?
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps with 2 images
- Gwen is the managerial accountant in charge of Company A, which sellswater bottles. She previously determined that the fixed costs of Company A consist ofproperty taxes, a lease, and executive salaries, which add up to P500,000. Thevariable cost associated with producing one water bottle is P80 per unit. The waterbottle is sold at a premium price of P500. a. Formulate the total cost function.b. Formulate the revenue function.c. Formulate the profit function.d. Determine the breakeven quantity and the breakeven sales.e. Use the graphical method to determine the breakeven point.Appliance Store realizes a mark-up of PhP3,450 in selling TV sets. If its items are sold at a mark-up of 40% of the selling price, D. If overhead expenses are at 27% of the cost, what is the break-even price of the TV set? E. If the TV set is sold at PhP7,500, how much profit or loss is incurred by Appliance Store? pls. show all the solutionsABC 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.
- SWA company is trying find costs of its products. Which of the following statements is true? A cost is: a. Always an expense. b. Always an asset. c. Something quite different from either an expense or an asset. d. Can be either an expense or an asset. e. Always a liability. MS Harius is an accounting in Lata company; the company has leased a copying machine on a monthly basis which is on a fixed fee each month in addition to a charge per copy. Technical made 2,400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3,500 copies Determine the total amount that would be paid for 1,800 copies. a. Some other amount not listed here b. $138 c. $144 d. $160 e. $163The Houston Armadillos, a minor-league baseball team, play their weekly games in a small stadium just outside Houston. The stadium holds 10,000 people and tickets sell for $10 each. The franchise owner estimates that the team’s annual fixed expenses are $180,000, and the variable expense per ticket sold is $1. (In the following requirements, ignore income taxes.) Required:1. Draw a cost-volume-profit graph for the sports franchise. Label the axes, break-even point, profit and loss areas, fixed expenses, variable expenses, total-expense line, and total-revenue line.2. If the stadium is half full for each game, how many games must the team play to break even?The Houston Armadillos, a minor-league baseball team, play their weekly games in a small stadium just outside Houston. The stadium holds 10,000 people and tickets sell for $10 each. The franchise owner estimates that the team’s annual fixed expenses are $180,000, and the variable expense per ticket sold is $1. (In the following requirements, ignore income taxes.) Required:1. Prepare a fully labeled profit-volume graph for the Houston Armadillos.2. What is the safety margin for the baseball franchise if the team plays a 12-game season and the team owner expects the stadium to be 30 percent full for each game?3. If the stadium is half full for each game, what ticket price would the team have to charge in order to break even?
- ABC & Company is making sales of Rs.16,00,000 and it extends a credit of 90 days to it's customers. However, in order to overcome the financial difficulties, it is considering to change the credit policy. The firm has variable cost of 80% and fixed cost of Rs.1,00,000. The cost of capital is 15%. Evaluate different policies and which policy should be adopted?Lorenzo, the owner of a local poster shop, comes to you for help. While his shop has been breaking even for the past two years, it has not been able to generate a profit. For him to keep the shop open, he needs to earn at least $12,000 in operating income next year. Review the contribution margin income statements for Lorenzo's shop and find the following: 1)Explain the benefits and advantages to the company for each scenario. 2)Explain the disadvantages to the company for each scenario.Cal’s Carpentry is considering outsourcing its accountsreceivable function. Currently, Cal employs two full-time clerksand one part-time clerk to manage accounts receivable. Each fulltime clerk has an annual salary of $36,000 plus fringe benefitscosting 30 percent of their salary. The part-time clerk makes$18,000 per year but has no fringe benefits. Total salary plus fringecost is $111,600. Cal estimates that each account receivable incursa $10 variable cost. The Small Business Accounts ReceivablesGroup (SBARG) specializes in handling accounts receivable forsmall- to medium-size companies. Doris Roberts from SBARGhas offered to do the accounts receivable for Cal’s Carpentry ata fixed cost of $75,000 per year plus $30 per account receivable.Next year, Cal expects to have 2000 accounts receivable.(a) Calculate the cost for Cal’s Carpentry to continue doingaccounts receivable in-house.(b) Calculate the cost for Cal’s Carpentry to use SBARG tohandle the accounts receivable.(c) If the fixed…
- Star Symphony would like to perform for a neighbouring city. Fixed costs for the performance total $5,000. Tickets will sell for $15 per person, and an outside organization responsible for processing ticket orders charges the symphony a fee of $2 per ticket. Star Symphony expects to sell 500 tickets. How many tickets must Star Symphony sell to break even? How many tickets must the symphony sell to earn a profit of $7,000? How much must Star Symphony have in sales dollars to break even? How much must Star Symphony have in sales dollars to earn a profit of $7,000? What is the symphony’s margin of safety in units and in sales dollars?You are the Chief Financial Officer of Max Gifts Company. A small company that sells Italian Memorabilia which are (1) snow globes with boats and (2) snow globes with buildings inside. The company's August 2021 sales and expenses are provided below: Boats Globe Building Globe Sales $20,000 $80,000 Variable Cost $15,000 $40,000 No. Momorabilia sold 200 1000 Sales Mix 20% 80% Monthly Fixed costs are $37,000. Required: f. Compute the break-even point in dollars for the company.Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?