You have a  food cart business that sells hotdogs for P25 each. The variable costs per hotdog are P10. Your fixed costs are currently P8,000 per month. You are considering expanding your business to three hotdog food carts which will increase fixed costs per month by P12,000.If you want to expand your business to three food carts, how many additional hotdogs will need to be sold per year in order to break-even?

Q: The manager of Coowie, Inc. is considering raising its current price of $30 per unit by 10%. If she…

A: Break even point in units = Fixed costs / Contribution margin per unit Where,…

Q: Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's…

A: At Breakeven, There is no profit no loss i.e. Total revenue = Total costAt Breakeven point,…

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…

A: Contribution margin is the price of the product deduct all the linked variable costs, results from…

Q: Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units.…

A: Given: Demand = 1,000 units Ordering cost = $5 per unit Storage cost = $4 per unit

Q: changed , how many units will the company need to sell for profit to remain the same as before the…

A: Determination present Profitability Particulars Amount Sales Revenue (15,000 x 50) $750,000…

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $10 per unit,…

A: Target sales = (Fixed Cost-Desired Income)/contribution per unit

Q: It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell…

A: Increment revenue arises when the product is processed further to earn additional revenue over the…

Q: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…

A: The targeted sales are calculated as sum of fixed cost and target profit divided by contribution…

Q: Carrolton, Inc., currently sells widgets for $80 per unit. The variable cost is $30 per unit, and…

A: The change in income can be calculated by calculating the difference between original net income and…

Q: Tasty Ice Cream is a year-round take-out ice creamrestaurant that is considering off ering an…

A: Break-Even quantity is the measure of units that must be produced and sold such that the revenue is…

Q: The Monde Company makes a juice cooler with a capacity of 24 bottles. Each juice cooler sells for…

A: The question is based on the concept of cost volume profit analysis and calculation of Breakeven…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: Cost of Producing one unit = labor cost + material cost + variable cost Cost of Producing one P22 +…

Q: Acme Brick Company has an order to make 25,000 bricks.  It normally charges $6.95 per brick but this…

A: Formula used: Break even units = Fixed cost / Unit Contribution margin Division of Unit contribution…

Q: The owner of shop is contemplating adding a new product which will require additional monthly…

A: Profit (loss) = Quantity x (selling price per unit – Variable Cost per unit) – Fixed Cost…

Q: Victory Tire Company makes a special kind of racing tire. Variable costs are $220 per​ unit, and…

A: Increase (decrease) in operating income = [(New sales price - old sales price) - (New variable cost…

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 company produces a special new type of TV. The company has fixed costs of $487,000, and it costs…

A: Profit can be defined as the earnings through business operations which is remained with the…

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…

A: Contribution margin is the price of the product deduct all the linked variable costs, results from…

Q: Bosco Company sells boxes of cookies and has total fixed costs of $200,000 per month.  Variable…

A: Given, Seeking price = 10 per unit Variable cost = 8 per unit Contribution = 2 per unit   Fixed cost…

Q: A car manufacturing firm wishes to introduce a new line of tires into its product range. It costs…

A: Given: Fixed cost = $50,000 Price per tire = $1.20 Total cost = $300,000

Q: 1. Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Mary Williams, owner of Williams Products, is evaluating whether to introduce a new product line.…

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

Q: A manufacturer of calculators has a fixed cost of $24,000 per month. Suppose that the marginal cost…

A: Sale price = $115 Marginal cost = Variable cost per unit = $40 Total fixed costs = $24,000…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: A Break-even point is a point where a company's revenues and expenses were equal within a specific…

Q: Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company…

A: Given,   Plastic pitchers Glass pitchers Selling Price 40 47 Variable cost per unit 30 26…

Q: Knoll, Inc. currently sells 51,000 units a month for $98 each, has variable costs of $68 per unit,…

A: Calculate the amount of prior profit before the price change.

Q: Unan Inc. has decided to focus strictly on producing and selling one type of pillow. For the coming…

A: There are two type of costs which are incurred in business. Fixed costs are costs which will not…

Q: A cafe currently offers a cup of cafe latte for P100. The variable costs are P58 per cup, and 10,000…

A: Break even analysis is often use by the firm to analyse the various parameters of sales, Variable…

Q: MicroCam produces a single product. Variable cost per unit is $25, and fixed costs are $95,000 per…

A: Sales at desired profit=Fixed cost+Desired profitSelling price-Variable cost per unit

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: What would be profit or loss if business sell 600 of these products

A: Every company starts to earn a profit. after sometime company may take the decision to expand its…

Q: A small coffee shop currently offers a cup of cafe latte for P107. The variable costs are P62 per…

A: Break Even sales is the point of sales where the firm neither incurs any losses or earns any gains…

Q: As a prospective owner of a club known as the Red​ Rose, you are interested in determining the…

A: Break even point is a point at which no profit/no loss condition arise. We can say that, it is a…

Q: a. What is the break-even point in units? b. What is the break-even point in dollars? c. If Weber…

A: Break-even analysis is one of the most important quantitative techniques that is used in the…

Q: One of the bulk raw beverages, which Blanchard buys, is gin. Assume that the cost of purchasing…

A: The question is related to Inventory Management. The Economic Order Quantity is that level of…

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: As a prospective owner of a club known as the Red​ Rose, you are interested in determining the…

A: Break-even point in dollars is the amount required to be generated by the company in order to know…

Q: As a prospective owner of a club known as the Red Rose, you are interested in determining the volume…

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

Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P58 per…

A: The Break-even selling price is the price where the organization neither earns any profit nor bears…

Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P63 per…

A: Here, Number of Units Sold is 10,079 Sales Price per cup is P106 Variable Cost per cup is P63 Profit…

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 small coffee shop currently offers a cup of cafe latte for P109. The variable costs are P60 per…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: In a slow year, Crazy Burgers will produce 1 million hamburgers at a total cost of $1.75 million. In…

A: In slow year, Production = 1 million hamburgers Total Cost = $1.75 millions   In good year,…

Q: The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are…

A: Contribution = Selling price - Variable cost Increase in contribution margin = 120 units × $100×55%…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.