Question
In: Accounting
Price Per 2 scoop sundae $5.00 Variable cost per sundae ingredients $1.35 direct labor $0.45 overhead...
| Price Per 2 scoop sundae | $5.00 |
| Variable cost per sundae | |
| ingredients | $1.35 |
| direct labor | $0.45 |
| overhead | $0.20 |
| Fixed cost per month | $9,000 |
1. Determine Izzy’s break-even point in units and sales dollars.
2. Determine how many sundaes must be sold to generate a profit of $18,000.
3. Calculate Izzy’s new break-even point for each of the following independent scenarios:
a. Sales price decreases by $0.50.
b. Fixed costs decrease by $300 per month.
c. Variable costs increase by $0.50 per sundae.
4. Based on the original information, how many sundaes must Izzy sell to generate a profit of $50,000, if sales price increases by $0.50 and variable costs increase by $0.30?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $ 5.00...
Izzy Ice Cream has the following price and cost information:
Price per 2-scoop sundae
$
5.00
Variable cost per sundae:
Ingredients
1.35
Direct labor
0.45
Overhead
0.20
Fixed cost per month
$
8,100
Required:
1. Determine Izzy’s break-even point in units
and sales dollars.
2. Determine how many sundaes must be sold to
generate a profit of $16,200.
3. Calculate Izzy’s new break-even point for
each of the following independent scenarios:
a. Sales price decreases by $0.50.
b. Fixed costs...
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $ 5.00...
Izzy Ice Cream has the following price and cost information:
Price per 2-scoop sundae
$
5.00
Variable cost per sundae:
Ingredients
1.35
Direct labor
0.45
Overhead
0.20
Fixed cost per month
$
8,100
Required:
1. Determine Izzy’s break-even point in units
and sales dollars.
2. Determine how many sundaes must be sold to
generate a profit of $16,200.
3. Calculate Izzy’s new break-even point for
each of the following independent scenarios:
a. Sales price decreases by $0.50.
b. Fixed costs...
Price per cake $ 14.21 Variable cost per cake Ingredients 2.33 Direct labor 1.14 Overhead (box,...
Price per cake
$
14.21
Variable cost per
cake
Ingredients
2.33
Direct labor
1.14
Overhead (box,
etc.)
0.12
Fixed cost per
month
$
2,973.60
Required:
1. Calculate Cove’s new break-even point under each of the
following independent scenarios: (Round your answer to the
nearest whole number.)
a. Sales price increases by $1.70 per cake.
b. Fixed costs increase by $475 per month.
c. Variable costs decrease by $0.43 per
cake.
d. Sales price decreases by $0.70 per cake.
2. Assume...
Price per cake 14.51$ Variable cost per cake ingredients $2.31 direct labor 1.13$ overhead 0.15$ fixed...
Price per cake
14.51$
Variable cost per cake
ingredients
$2.31
direct labor
1.13$
overhead
0.15$
fixed cost per month
5,132.40$
1. Calculate Cove’s new break-even point under
each of the following independent scenarios:
a. Sales price increases by $1.90 per cake.
b. Fixed costs increase by $530 per month.
c. Variable costs decrease by $0.33 per
cake.
d. Sales price decreases by $0.60 per cake.
2. Assume that Cove sold 495 cakes last month.
Calculate the company’s degree of operating...
Price per cake $13.31 Variable cost per cake ingredients 2.24$ direct labor 1.01$ overhead 0.23$ Fixed...
Price per cake
$13.31
Variable cost per cake
ingredients
2.24$
direct labor
1.01$
overhead
0.23$
Fixed cost per month
3,342.20$
1. Determine Cove’s break-even point in units
and sales dollars.
2. Determine the bakery’s margin of safety if
it currently sells 380 cakes per month.
3. Determine the number of cakes that Cove must
sell to generate $1,800 in profit.
Price per cake 14.51 Variable cost per cake ingredients 2.31 direct labor 1.13 overhead 0.15 fixed...
Price per cake
14.51
Variable cost per cake
ingredients
2.31
direct labor
1.13
overhead
0.15
fixed cost per month
5,132.40
Using the degree of operating leverage, calculate the change in
profit caused by a 14 percent increase in sales revenue. (Round
your intermediate values to 2 decimal places. (i.e. 0.1234 should
be entered as 12.34%.)). I NEED THIS RIGHT BADLY!!
. Calculate Cove’s new break-even point under
each of the following independent scenarios:
a. Sales price increases by $1.90 per...
Price per cake 14.51 variable cost per cake ingredients 2.31 direct labor 1.13 overhead 0.15 fixed...
Price per cake
14.51
variable cost per cake
ingredients
2.31
direct labor
1.13
overhead
0.15
fixed cost per month
5,132.40
Calculate Cove’s new break-even point under each of the
following independent scenarios:
a. Sales price increases by $1.90 per cake.
b. Fixed costs increase by $530 per month.
c. Variable costs decrease by $0.33 per
cake.
d. Sales price decreases by $0.60 per cake.
2. Assume that Cove sold 495 cakes last month.
Calculate the company’s degree of operating leverage....
Price Per cake 14.51$ Variable Cost per cake ingredients 2.31$ direct labor 1.13$ overhead(box,etc) 0.15$ fixed...
Price Per cake
14.51$
Variable Cost per cake
ingredients
2.31$
direct labor
1.13$
overhead(box,etc)
0.15$
fixed cost per month
5,132.40$
1.
Calculate Cove’s new break-even point under each of the
following independent scenarios:
a. Sales price increases by $1.90 per cake.
B. Fixed costs increase by $530 per month.
c. Variable costs decrease by $0.33 per
cake.
d. Sales price decreases by $0.60 per cake
2. Assume that Cove sold 495 cakes last month.
Calculate the company’s degree of operating...
Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour.
Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour. Total budgeted fixed overhead is $25,000 per month. The $25,000 per month includes $7,000 in depreciation expense. Total budgeted direct labor-hours for the month of July is 20,000. Based on the month of July only, the predetermined overhead rate is $ (Enter your answer as a number rounded to 2 decimal places.)
Variable Cost Per Unit: Manufacturing: Direct Materials = $20 Direct Labor = $12 Variable Manufacturing Overhead...
Variable Cost Per Unit:
Manufacturing:
Direct Materials = $20
Direct Labor = $12
Variable Manufacturing Overhead = $4
Variable Selling and Administrative = $2
Fixed costs per year:
Fixed manufacturing overhead = $960,000
Fixed selling and administrative expenses = $240,000
During its first year of Operations, produced 60,000 units and
sold 60,000 units. During it's second year of operations, it
produced 75,000 and sold 50,000 units. In its third year, it
produced 40,000 units and sold 65,000 units. The selling...
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