Question 1: Darby is running a flower stand, and is selling a single bouquet for $31.50. Her contribution margin is $24.57 per bouquet and the breakeven sales in dollars for Darby's flower stand are $700 per day. How much can she pay per day in fixed costs to run the stand?
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- Blake Cohen Painting Service specializes in small paint jobs. His normal charge is $350/day plus materials. Moesha needs her basement painted. Blake has produced a bid for $1 500 to complete the basement painting. Blake completed a cost estimate for his service as shown. A. Moesha mentions that she cant pay the $1500. She is a widow and you feel an obligation to take care of widows but cant lose money. How much would you charge and still be able to make a profit? B. Moesha has asked you to paint the rest of her house. Could you continue to give her the same deal?1) Margin at the Kiosk You rent a kiosk in the mall for $300 a month and use it to sell T-shirts with college logos from colleges and universities all over the world. You sell each T-shirt for $25, and your cost for each shirt is $15. You also pay your salesperson a commission of $0.50 per T-shirt sold in addition to a salary of $400 per month. Construct a contribution margin income statement for two different months: in one month, assume 100 T-shirts are sold, and in the other, assume 200 T-shirts are sold.It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $4.00 a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $12,000 a month rent for his factory and store, and also pays $75,000 a month to his staff in addition to the commissions. Homer sold 67,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin? Select one: a. $205,875 b. $334,125 c. $64,125 d. $270,000 e. $50,625
- 8. Wanda wants to open a health-food store. Her monthly expenses are rent $3,500, utilities of $1,000, insurance of $500, and payroll of $4,250. She estimates that her cost of goods is approximately 65 percent of sales. Wanda would like to make $4,000 a month for herself. a. What is Wanda’s contribution margin? . b. How much does she need in monthly sales to break even? c. How much does she need in monthly sales to make a profit of $4,000? d. Construct a break-even chart for Wanda’s health-food store.You own and manage a yard care business in which you charge $50 per visit to care for each yard (your revenue). Your labor, fuel, and other variable costs are 31.1% of revenue, and you have $60,000 in fixed costs. How many visits to care for yards must you perform in a year to break even?Adam Granger operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $14 and sells them for $20. Adam’s current breakeven point is 15,000 hats per year. Contribution margin per unit : $6 Current level of fixed costs: $90000 Assume that Adam’s fixed costs, variable costs, and sales price were the same last year, when he made $21,000 in net income. How many hats did Adam sell last year, assuming a 30% income tax rate? 20000 hats What was Adam’s margin of safety in units and dollars last year? Margin of safety in units enter Margin of safety in units hats Margin of safety in dollars
- Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per month. How many units must Mackler sell to break even? Please show the formula you used and show your work in the space provided.2. Vincent is leasing 100 units of market space in zamboanga city. He computed his fixed costscat P320,000 monthly. He is leasing each space at P14,000 monthly. He spends aroundvP2,950 per rented space monthly for the maintenance. How many spaces must be rented monthly to breakeven? If vincent is targeting a minimum monthly profit of P500,000, how many spaces must be leased? 3. Jane manufactures soft leathers. She spends around P315 per square foot of leather produced and sells it at P300 per square foot. Also, she knows that her fixed costs amount to P1,400,000. What is the minimum number of square feet sold to be able to breakeven? If she only sold 6,000 square feet of leather, did she earn profit? If yes, how much? If no, how much money did she lose?Wanda wants to open a health-food store. Her monthly expenses are rent $3,500, utilities of $1,000, insurance of $500, and payroll of $4,250. She estimates that her cost of goods is approximately 65 percent of sales. Wanda would like to make $4,000 a month for herself. What is Wanda’s contribution margin? How much does she need in monthly sales to break even? How much does she need in monthly sales to make a profit of $4,000? Construct a break-even chart for Wanda’s health-food store.
- Schrute Farm Sales buys portable generators for $460 and sells them for $750. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $7000 a month rent for his store, and also pays $1800 a month to his staff in addition to the commissions. Mr. Schrute sold 300 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin? Question 49 options: $75,750 $149,250 $374,250 $225,000Phil makes and sells rugs at his roadside stand. His monthly fixed cost for owning the stand is $1500. If he makes and sells 12 rugs, his total costs are $1548 and he brings in $408 in revenue. Find Phil's monthly cost, revenue, and profit functions (assuming they are linear). Let x be the number of rugs made and sold each month.QUESTION 1 Bock Ltd. makes 200 wooden kitchen chairs every month and sells them for GHe50 each. Fixed month overheads are GHe3.00 and thestandard cost of one chair is as follows: GHe Materials 15 Direct labour 8 Variable overheads 7 Required: 1.Calculate for one month 2. The variable cost of one chair b. the breaker en point 3. The profit if 200 chairs are sold 4. The number of chairs sold to give profit of GHe4,000