The hotel has 85 rooms, an average daily rate of $88, and a per occupied room cost of $12. Its fixed costs are $102,000 per month. What is the required occupancy percent to realize a monthly profit of $15,000?
Q: If White Mountain Railways fixed costs total 50,000 per month the variable cost per passenger is $10…
A: The CVP analysis is one of the vital techniques of management accounting which is known as cost…
Q: a. Q-Constructions workers’ have approached the building union and been informed they could be paid…
A: a) The income made by the company at break-even Gross Income ( Gross Receipts at break-even) Average…
Q: nt should be charged to obtain a maximum profit.
A: A real estate office handles a 40-unit apartment complex. When the rent is $540 per month, all units…
Q: Last year Minden Company introduced a new product and sold 15,000 units of it at a price of $70 per…
A: In this question, we will find a breakeven point in dollar sales which can be calculated by dividing…
Q: The selling price of Product Y is set at $1,200 for each unit and sales for the coming year are…
A: Introduction:- Calculation of target profit as follows:- Target profit =Investment x 40%
Q: Suppose a Best Western motel has annual fixed costs applicable to its rooms of $1.2 million for its…
A: Average daily room rents = $50 Average variable costs = $10 As the motel is half full throughout the…
Q: Wadena Search and Rescue estimates the monthly cost of responding to emergency calls to be $90,000,…
A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…
Q: The Cullumber Acres Inn is trying to determine its break-even point during its off-peak season. The…
A: Break-even point in number of rented rooms = Total fixed cost / Contribution margin per room…
Q: Q-Constructions has tasked you to investigate the number of construction projects per year for which…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: The annual variable production costs for a plant operates at 70% capacity are $600,000 while the sum…
A: Workings: 1) Computation of income statement at 70% capacity Particulars Amount $ Per unit $…
Q: A company is creating and selling a new product. They can sell each unit for $26.29. the variable…
A: Selling price = $ 26.29 Variable cost = $ 15.04 Fixed cost = $ 2968
Q: Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the…
A: Minimum selling price is the price which is used to prevent the items from being sold with the no or…
Q: A company requires 8,000 units of material A per month. The cost per order is $950 and the holding…
A: Total cost of buying the material includes holding cost + ordering cost
Q: On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold…
A: Work in process (WIP), work in advance (WIP), merchandise in preparation, or in-process stock are a…
Q: The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at…
A: Answer 1) Calculation of Break-even point in rooms Break-even point in rooms = Total Fixed cost per…
Q: The Price Company will produce 55,000 widgets next year. Variable costs will equal 40 percent of…
A: Solution:- Earnings before interest and taxes (EBIT) means the operating income of an entity before…
Q: A furniture manufacturer has an annual overhead cost of P100,000 plus 20% of the sales in pesos.…
A: Let selling price be X. Sales will be 8000X. Variable cost per unit = Labor cost+Materials cost…
Q: A health insurance policy costs $275/month and pays $100,000 for a major illness. The probability…
A: The expected net profit is the difference between the amount received by the company and the amount…
Q: 1. A company is considering opening a new product line. The building being considered will have a…
A: Lets understand the basics. Break even point is a point at which no profit/no loss condition arise.…
Q: Jason Bartlett is the managing partner of a business that has just finished building a 60-room…
A: There are two types of costs that are being incurred in the business. One is variable costs which…
Q: A local company assembling stereo radio cassette produces 312 units per month at a cost of Php 800…
A: Let N = number of radio cassette to produce for break even point Total Income =number of radio…
Q: Annually (10000) units of a product are sold at a price of (12) $/unit, if the fixed costs is…
A: The question is based on the concept of Cost Accounting.
Q: Auto Tires, Inc. sells tires to service stations for an average of $45 each. The variable costs of…
A: Breakeven sales point means point of level at which business is only recovering its fixed costs and…
Q: Who Done It Mystery Theater sells tickets for dinner and a show for $55 each. The cost of providing…
A: Contribution margin ratio is the contribution margin expressed in terms of sales / revenue.…
Q: how many pairs must be produced each month for the foundry to break even?
A: Break even:- Break even is a point at which the company is neither in profits nor losses. Anything…
Q: Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable…
A: Contribution Margin = ( Unit Sales Price - Unit Variable Cost ) x Number of units Net profit=…
Q: It costs the American Automobile Company $8,000 to produce each automobile, and fixed costs (rent…
A: We need to answer following questions: a) How many cars should be produced each week to maximize…
Q: What is the break-even point for room service operations in terms of total room service revenue?…
A: Break even point in Revenue = Fixed cost / contribution margin ratio
Q: The cost of producing a calculator consists of $250.00 per unit for labor and material cost, $75.00…
A: The cost-volume-profit analysis or the CVP analysis is a method or technique used in cost accounting…
Q: Q-Constructions has tasked you to investigate the number of construction projects per year for which…
A: Break-even point (BEP) represents that particular point of sale where there is no operating…
Q: the company's sales volume in pounds must be:
A: Operating profit is the income generated by the company through its daily operating activities. The…
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: The Calculation of Profit is as follows: Contribution = Sales - Variable Costs…
Q: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the…
A: Pounds per sack = 100 lb Week by week interest = 100,000 lb d = Wkly intt for sacks =…
Q: You are selling a new line of T-shirts on the boardwalk. The selling price will be $25 per shirt.…
A: Break even point in units = Fixed costs / contribution margin per unit Break even point in sales…
Q: A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year.…
A: Hi student Since there are multiple subparts,we will answer only first three subparts. If you want…
Q: The fixed costs incurred by a automotive shop are $200,000 per year. Variable costs are 60% of the…
A: Variable cost = 60% of annual revenue = $300,000 x 60% = $180,000
Q: 2. Vincent is leasing 100 units of market space in zamboanga city. He computed his fixed costscat…
A: 2) Fixed cost = P 320000 Leasing revenue = P 14000 Leasing cost = P 2950 Let n = Number of units for…
Q: A 50-room hotel has an ADR of $140 per room, variable cost of $25 per room and monthly fixed costs…
A: Contribution margin per room = ADR - Variable costs = 140-25 = $115 per room
Q: The fixed costs within a machine shop are $3.4M annually. The main product this shop produces is…
A: Formula: Net Profit = Revenues - expenses Deduction of expenses from revenues derives the Net…
Q: During a slack period, a manufacturer can sell 3000 articles per month at a price of $1.20 each. A…
A: Following are the given inputs Particulars Amount in $ Per Item Sales (3000 * 12) 36,000 $ 1.2…
Q: The Charleston Company has fixed costs of Birr 20,000 per month, and variable costs of Birr 15 per…
A: Profit = Sales - Variable Cost - Fixed Cost
Q: Company XYZ currently produces and sells 40,000 units. At this level, the total contribution margin…
A: Under Marginal costing profit is Sales revenue - Total variable cost - Total Fixed cost We know…
Q: Rusty, Inc. is the sole distributor of a computer product that sells for $50 per unit, and has a…
A: Marginal Costing - Marginal Costing is good method used to calculate cost of each additional unit…
Q: A business has the capacity to manufacture 720 electronic components per annum that it sells for…
A: Cost sheet is the pro forma of estimating number of units of sales, sales value and other costs…
Q: The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while…
A: The expected sales needs to be calculated in order to recover the fixed cost and earn a profit of…
Q: The cost to operate a clothes dryer for a year is $80.25. If the rate for electrical energy is…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: A facility has current liabilities of $448,923 and current assets of $562,244. What is the…
A: The current ratio is a method of finding out the company's ability to pay its short-term…
Step by step
Solved in 3 steps
- Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
- A restaurant is considering the purchase of new tables and chairs for their dining room with an initial investment cost of $515,000, and the restaurant expects an annual net cash flow of $103,000 per year. What is the payback period?Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?A 125 room hotel has an annual fixed cost of $1,150,000 and a profit goal of 150,000. With an average room rate of $78 and average variable cost of $34 per room sold, determine the annual number of room sales, occupancy percentage, and revenue required.
- A 100-room hotel has an ADR of $100, annual fixed cost of $1,000,000, variable cost per room sold of $10 and average occupancy of 70%. Find the required occupancy if initial equity investment in the hotel was $2,000,000 and owners require an annual rate of return of 15% and tax rate is equal to 35%. Assume 30 days in a month and 360 days in a year.A hotel has 300 rooms and an annual fixed cost of BRL 1,500,000.00 and variable costs of BRL 90.00 per occupied room, that is, per day-room. The hotel is open 365 days a year and is subject to a 34% income tax. For it to be at the economic break-even point, what should be the daily price P for an occupancy rate of 40% for the hotel to give an annual return of 10% on the investment made by the partners in its construction. The amount invested was BRL 10,000,000.00. a) $182.17 b) $165.69 c) $158.84 d) $134.41How many customers and what revenue will the resturant need each month to break even? The monthly costs consist of rent of $10,000, interest of $3,500, fixed labor costs of $12,000, other variable costs are 27% of revenue. The guest check average is $14.50.
- A real estate office handles a 40-unit apartment complex. When the rent is $540 per month, all units are occupied. For each $40 increase in rent, however, an average of one unit becomes vacant. Each occupied unit requires an average of $65 per month for services and repairs. What rent should be charged to obtain a maximum profit.The Sandhill Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent at $120 a night. Operating costs are as follows: Salaries $5400 per month Utilities $1300 per month Depreciation $1100 per month Maintenance $2520 per month Maid service $33 per room Other costs $63 per room a/ Determine the inn’s break-even point in number of rented rooms per month. b/Determine the inn’s break-even point in dollars.A company with monthly fixed costs of $170,000 expects to earn monthly operating income of $25,000 by selling 6,500 units per month. What is the company’s expected unit contribution margin?