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In: Accounting

Sam's Souvenirs, Inc. sells souvenirs for $25 each. Sam's pays rent of $165 per month. Its...

Sam's Souvenirs, Inc. sells souvenirs for $25 each. Sam's pays rent of $165 per month. Its raw materials cost $9 and its direct labor costs $6 for each souvenir. Two of Sam's recent electrical utility bills were as follows:

Electric Utility Bills
Month production output cost ($)
May 20 75
June 30 95

a. What is the mixed cost based on the Electricity Utility Bill data?

b. What is the fixed portion of mixed cost?  

c. What is the variable portion of mixed cost? $2

d. What is the total fixed cost? $200

e. What is the total variable cost? $17

f. What is her breakeven point, in number of tricycles (per month)? 25

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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