Q.No.1 Spark Cafe charges is PKR 500 for a full buffet deal per person. The manager told that the variable expenses are PKR 250 per person and fixed cost is PKR 75000 per month Compute the following: 1. Contribution Margin per unit 2. Contribution Margin Ratio 3. Breakeven point in unit

Q.No.1 Spark Cafe charges is PKR 500 for a full buffet deal per person. The manager told that the variable expenses are PKR 250 per person and fixed cost is PKR 75000 per month Compute the following: 1. Contribution Margin per unit 2. Contribution Margin Ratio 3. Breakeven point in unit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 11RE

See similar textbooks

Related questions

Q: Q: Spark Cafe charges is PKR 500 for a full buffet deal per person. The manager told that the…

A: Spark Cafe charges is PKR 500 for a full buffet deal per person. The manager told that the variable…

Q: I need help

A: 1. Revenue from Rooms Operation = 65% of Total Revenue Variable Costs for Rooms Operation = 25%…

Q: Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of…

A: SOLUTION- FORMULAS- 1- BREAK EVEN POINT (UNITS)= FIXED COST / CONTRIBUTION PER UNIT.…

Q: Butter cup company distribute a single product. The company's sale's and expenses for last month…

A: Break Even point in units =Fixed Expense/Contribution per unit Break Even point in Sales= Fixed…

Q: Noel & Vang Company sells only one product at a regular price of $9.00 per unit. Variable expenses…

A: The contribution margin is calculated as excess of sales revenue over total variable cost.

Q: Calculate amount of sales when variable costs are equal to 2/5th of sales and fixed costs are equal…

A: Following are the answers to given questions

Q: Motorola's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling…

A: Break even point means a point where firm is neither earning profit nor incurring any loss.…

Q: Felix Company produces a product that has a selling price of $12.00 and a variable cost of $9.00 per…

Q: 2) CVP break-even, margin of safety and target net income Zootsuit Inc. makes travel bags that sell…

A: Unit Contribution margin = $56 -:$42 = $14 Contribution margin ratio = $14 / $56 = 25%

Q: Margin of Safety Yellow Sticker Company's variable expenses are 40% of sales. The company has…

A: Lets understand the basics. Margin of safety is a all the sales over break even point. Formula (For…

Q: KonikaEnterprises distributes a single product whose selling price is tk30 and whose variable…

A: We will only answer first question as it is not specified which question to be answered. Kindly…

Q: Margin of Safety Yellow Sticker Company’s variable expenses are 40% of sales. The company has…

A: The margin of safety is a tool of cost volume profit analysis. It can be calculated by deducting…

Q: Menlo Company distributes a single product. The company's sales and expenses for last month follow:…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: All About the Dough sells funnel cake for $5.25 per customer Variable costs are $2.50 per cake. Fbed…

Q: Time left C Reevis Company has fixed costs of $7,500. Their contribution margin ratio is 20%. What…

A: Break-even point: It is a point where total costs and total revenue are equal, which means there is…

Q: Noel & Vang Company sells only one product at a regular price of $9.00 per unit. Variable expenses…

A: Variable cost per unit = 55% of sales = $9 x 55% = $4.95 per unit

Q: Zero, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs…

A: Cost volume profit analysis is a technique used by the company to have an estimate of required…

Q: 3. After reviewing its cost structure (variable costs of P7.50 per unit and monthly fixed costs of…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Maple Leaf produces and sells a product. The product sells for $60 per unit and has a contribution…

A: Unit contribution margin = sales x contribution margin ratio = $60 per unit x 30% = $18 per unit

Q: Raven Inc. sells a single product for $51. Variable costs include $28.23 for each unit plus a $9…

A: Contribution margin percentage = ( Selling price - Variable cost ) / Selling price Variable cost…

Q: Sable Co. sells office stationery for $12.00 per package. The paper's variable cost per package is…

A: Selling price per unit (P) = $12.00 Variable cost per unit (V) = $7.00 Operating fixed cost (OC) =…

Q: 3. After reviewing its cost structure (variable costs of P7.50 per unit and monthly fixed costs of…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: AC75067 company produces and sells a product with the following characteristics: Per Unit Selling…

A: Net income = contribution - fixed cost

Q: Tiktok Company distributes a lightweight lawn chair that sell for P150 per unit. Variable costs are…

A: Here we are given selling price per unit, variable cost per unit and total fixed costs. We can use…

Q: 3. After reviewing its cost structure (variable costs of P7.50 per unit and monthly fixed costs of…

A: When desired sales needs to be calculated, following formula shall be used: Desired sales units =…

Q: 1. Break-Even Point Hilton Enterprises sells a product for $118 per unit. The variable cost is $80…

A: Cost-Volume-Profit analysis is the technique of managerial accounting, which examines that how…

Q: Mauro Products distributes a single product, a woven basket whose selling price is $30 per unit and…

A: Break even point = Fixed costs /Contribution margin per unit where, Contribution margin per unit =…

Q: Marlin Motors sells a single product with a selling price of $350 with variable costs per unit of…

A: Contribution margin per unit has been calculated as follows: Contribution margin per unit=Selling…

Q: Maple Enterprises sells a single product with a selling price of $80 and variable costs per unit of…

A: Given, Selling Price =$80 per unit Variable Cost =$32 per unit Fixed Cost =$28,800 Break Even…

Q: Calculate amount of sales when variable costs are equal to 2/5th of sales and fixed costs are equal…

A: Contribution margin = Sales - Variable expenses= Rs. 150 - Rs. 90= Rs. 60 per unit

Q: Calculating breakeven point in units, contribution margin has given Mackler, Inc. sells a product…

A: Break Even Point: It is a point where the total cost of a company equals to their total sales. In a…

Q: Total Per Unit Revenue $ 480,000 $ 30.00 Variable expenses…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Spark Cafe charges is PKR 500 for a full buffet deal per person. The manager told that the variable…

A: Spark Cafe charges is PKR 500 for a full buffedeal per person. The manager told that the variable…

Q: Noel & Vang Company sells only one product at a regular price of $9.00 per unit. Variable expenses…

A: Given, Old selling price = $9.00 per unit New selling price = $8.00 per unit Variable expenses = 55%…

Q: Raven Inc. sells a single product for $50. Variable costs include $29.00 for each unit plus a $7…

A: Lets understand the basics. Contribution margin is a margin generated from the sales. Formula =…

Q: 1 Cosm a. Determine the monthly break-even point in units and in sales value. accountant of Cosmo…

A: Solution a: Selling price per bottle = RM10 Variable cost per bottle = RM 8 Contribution margin per…

Q: b) Tara Company produces a single product. The projected income statement for the coming year is as…

A: The break-even point is a stage where the company incurs no loss or profit. In other words, the…

Q: Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose…

Q: Mauro Products distributes a single product, a woven basket whose selling price is $12 per unit and…

A: Break-even (units) = Fixed Cost / (Selling Price - Variable Cost) Break-even (dollars) = Break-even…

Q: Marlin Motors sells a single product with a selling A. What is the company's break-even point in…

A: Contribution is the amount of earnings left after deducting all direct costs from the revenue from…

Q: Mauro Products distributes a single product, a woven basket whose selling price is $15 per unit and…

A: Break Even Point: Break Even Point is defined as the level where there is no profit and loss. It is…

Q: Menlo Company distributes a single product. The company's sales and expenses for last month follow:…

A: "The break even sales units are the sales where business earns no profit no loss."

Q: Dasket Whose selling price is $11 per unit and whose variable expense is $9 per unit. The company's…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: What is the monthly break-even point in units and in sales dollars? 2. What is the total…

A: Hi student Since there are multiple sub parts, we will answer only first three sub parts.

Q: R 250 per person and fixed cost is PKR 75000 per month. Compute the following:…

A: Basic Information :- Spark Cafe charges is PKR 500 for a full buffedeal per person. The manager told…

Q: Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose…

A: Contribution margin ratio is also profit-volume ratio. It helps us to estimate that what percent of…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

plz be fast em waiting

HOURLY 2 MA (1) - Word
lome
Insert
Design
Layout
References
Mailings
Review
View
H
Design
Layout
Tell me
ut
Times New Rom -11
AA Aa
AaBbCcI AaBbCc
py
BIU abe x, x' A * A v
I Normal
T No Spac..
mat Painter
rd
Font
Paragraph
Q.No.1
Spark Cafe charges is PKR 500 for a full buffet deal per person. The manager told that the variable
expenses are PKR 250 per person and fixed cost is PKR 75000 per month. Compute the following:
1. Contribution Margin per unit
2. Contribution Margin Ratio
3. Breakeven point in unit
4. Breakeven point in PKR
5. Breakeven point in unit if they want Profit of PKR 25000
6. Breakeven point in PKR if they want Profit of PKR 95000
Marks: 06
Q.No.2

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

You place an order for 1,700 units of Good X at a unit price of $54. The supplier offers terms of 3/15, net 35. a-1. How long do you have to pay before the account is overdue? a-2. If you take the full period, how much should you remit? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b-1. What is the discount being offered? (Enter your answer as a percent.) b-2. How quickly must you pay to get the discount? b-3. If you do take the discount, how much should you remit? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-1. If you don’t take the discount, how much interest are you paying implicitly? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-2. How many days’ credit are you receiving? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Buyer A bought 20 pcs of product Z from Seller B with the following information: Selling price, P1,500 each. With terms 20,10,5/15/ n/30. Transport cost is P10 per unit. If the payment is made on the 20th day.1. how much will Buyer A pay the seller when the term is FOB Destination Prepaid?2. how much will Buyer A pay the seller when the term is FOB Shipping Point Prepaid?3. how much will Buyer A pay the seller when the term is FOB Destination Collect?
Unearned Sales Revenue Brand Landscaping offers a promotion where a customers lawn will be mowed 20 times if the customer pays $700 in advance. Required: Prepare the journal entry to record (1) the customers' prepayment of S700 and (2) Brands mowing of the lawn one time.
For business math: Levin Furniture buys a living room set with a $4,800 list price and a 60% trade discount. Freight (FOB shipping point) of $55 is not part of the list price. What is the delivered price (including freight) of the living room set, assuming a cash discount of 5/10, n/30, ROG? The invoice had an April 8 date. Levin received the goods on April 19 and paid the invoice on April 25. Can you show me how to get the delivery rate, and go into detail about the n/30 and ROG as well?
This is a 2.5 years old store. Last year CP is $109,350, Bonus is $4,500 and Worker Comp is $900. This year CP is $116,400, Bonus is $3,600 and Worke based on this data? О 5600 О $500 O 5400 O 5300 $138.404 S136.151 O $135.505 O 5148.479 Net sales = $135,342 Employee Meals = $1,920 Discounts - $155 Coupons/promotions = $987 What is the Gross Sales? Net sales last year is $88,000. Net sales this year is $97.500. What is the SSS? O 12.2% О 11.7% O 10.8% O 9.9%
Gordon’s Grocers purchases bread from Buddy’s Bread Company at $1.95 per loaf. Gordon’s recently engaged in a customer service contract with Buddy’s to purchase 109,000 loaves of Buddy’s bread. Buddy offered credit to Gordon’s at terms of 3/15, n/45. Buddy expects Gordon to pay within the discount period. Required: If an amount box does not require an entry, leave it blank. Question Content Area Prepare the journal entry to record the sale using the net method. Hint: In calculating your answer, use one minus the discount rate (eg. 1 - 0.02 = .98)
A retailer buys merchandise from a supplier with an invoice amount of $12,600. The terms of the sale are 5/20, n/30. What is the net amount due (in $) on the order if the bill is paid by the 20th day? $ hi also the 5 is highlighted red i dont know what that mean
An answering machine cost a dealer $220.00 less 31.5%, 7%. It is regularly priced at $212.00. The dealer's overhead is 17% of the regular selling price and the answering machine was cleared out for $175.45. What is the regular markup based on selling price? Round to nearest 100th
Sales transactions for Dish Mart and record any required journal entries. Note that all sales transactions are with the same customer, Emma Purcell. Mar 5 Dish Mart made a cash sale of 13 sets of dishes at a price of $700 per set to customer Emma Purcell. The cost per set is $460 to Dish Mart. Mar 9 Dish Mart sold 23 sets of dishes to Emma for $650 per set on credit, at a cost to Dish Mart of $435 per set. Terms of the sale are 5/15, n/60, invoice date March 9. Mar 13 Emma returns eight of the dish sets from the March 9 sale to Dish Mart for a full refund. Dish Mart returns the dish sets to inventory at their original cost of $435 per set. Mar 14 Dish Mart sells 6 sets of dishes to Emma for $670 per set on credit, at a cost to Dish Mart of $450 per set. Terms of the sale are 5/10, n/60, invoice date March 14. Mar 15 Emma discovers that 3 of the dish sets from the March 14 purchase, and 7 of the dish sets from the March 5 sale are missing a few…
A retailer buys an alarm set for RM 850. Operating expenses are 5 % based on cost. The retailer wants a 30% net profit based on the selling price. Find a) the breakeven selling price. b) the retail price. c) the gross profit.
Use the table mentioned below and calculate the average monthly amount of each 3 drivers. Number of Machine Hours Purchase Orders Moves (Mhr) (PO) July 340 5400 250 Aug. 380 5200 300 Sept. 400 5800 450 Oct. 500 6200 380 Nov. 480 6000 340 Dec. 420 5600 200 Total 2520 34200 1920
Computers and More offers discounts to its customers and allows the customer to return the product if not satisfied. Computers and More had sales of $850,000 and offers the customer a payment term of 3/12 n/30. The company received $15,000 in returned goods. The cost of goods sold for the period after returns was $320,000. Calculate net profit and gross profit.