roman

feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year.

1.What is the product's CM ratio?

*Use the CM ratio to determine the break-even point in sales dollars

2. Break-even point in sales

*Use the CM ratio to determine the break-even point in sales dollars

3.Break-even point in sales

*Due to an increase in demand, the company estimates that sales will increase by $75,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed costs do not change?

4.Increased net operating income

Assume that the operating results for last year were:

Sales $400,000

Variable expenses 160,000

Contribution margin 240,000

Fixed expenses 180,000

Net operating income $60,000

* Compute the degree of operating leverage at the current level of sales.

5.Degree of operating leverage

* The president expects sales to increase by 20% next year. By what percentage should net operating income increase?

6. Increase in net operating income

please help me i have been working on this problem for a while and i cant figure it out

Ralph runs a small business that mnufactures teddy bears assume that the market for teeddy bears is a price taker market and the market pric is $20. per bear

Suppose Ralphs cost structure per hour is presented by the following table **********output**********total cost

********Bears per hour*****(TC) ($)

********0*******************15

********1.*******************30

********2********************40

********3********************45

*******4*********************50

******5**********************60

*******6*********************75

*******7********************100

1. Ralph total revenut (TR) from selling two teddy berss would be

A.$0

B$15

C$80

D$60

E$30

F$40

2. and this profit would be

A$60

B$15

C$40

D$0

E$30

F$80

3. Ralphs marginal revenue (MR) from the second teddy bear he sells is

A$20

B$10

C$15

D$5

E$30

F$35

G$25

4.and hes marginal cost (MC) of producing a second bear is

A$15

B$25

C$10

D$5

E$40

F$0

there must be many buyers and sellers-a few players cant dominate the market.

*firms must produce a standardized product-buyers must regard all sellers product as equivalent.

*firms and resources must be fully mobile allowing for free entry and exit into the industry.

*each firm supplies a small portion of the toal amount supplied to the market

*taken together these four conditon imply that in a price taker market all producers and consumers are price takers

identify whether or not each of the following scenarios describes a price-taker market. for each scenario explain why or why not.

1. there are hundreds of colleges that serve millions of student each year the colleges vary by location size and educational quality which allows students with diverse preferences to find schools that match theirs needs.

2. Is # 1. a price taker Yes or no

3.. why or why not is #1 a price taker

A. only few sellers

B. not standardized rpoduct

C. no free entry

D meets all assumption

4. there are 100ths of hight school students in a need of algebra tutoring services. dozens of companies offer tutoring services parents decide on tutors and they view the quality of the tutoring at the different companies to be largely the same.

5. is #4 a price taker Yes Or No

6. why or why not #4 a price taker

A. only few sellers

B not sandanderized product

C no free entry

D meets all assumption

NOTE 16-19 ON THE FIRST BLANK WHICH OF THESE ANSWER IS THE BEST ANSWER

FIX EXPENSE,CONTRIBUTION MARGIN,VARIABLE EXPENSES, ADVERTISING ,SALES

NOTE: ON THE SECOND BLANK INPUT THE INCOME STATEMENT FOR THE YEAR USING THE FOLLOWING :

Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribution format income statement for the year. (Input all amounts as positive

---------------INCOME STATEMENT

---------------FOR THE YEAR END

16_______________20.$_____________

17_______________21$_____________

18_______________22.$_____________

19_______________23 $_____________

**********I WORK THESE PROBLEMS OUT AND I CONTINUE TO GET THEM ALL WRONG PLEAE HELP....

The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented out for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month....Occupancy-Days... Electrical

January... 1,736....$4,127

February....1,904....$4,207

March ........2,356....$5,083

April.......... 960........$2,857

May.......... 360.........$1,871

June.......... 744.........$2,696

July.......... 2,108.......$4,670

August...... 2,406......$5,148

September...840........$2,691

October.......124.........$1,588

November.....720........$2,454

December.....1,364.....$3,529

--------------------------------------------------------------------------------

Using the high-low method, estimate the variable cost of electricity per occupancy-day and the fixed cost of electricity per month. (Round the fixed cost to the nearest whole dollar and the variable cost to the nearest whole cent.)

1.variable cost $ ___________________ per occupancy

2. fix cost $_________________per month

3. Which of the following statement(s) is true? (Select all that apply.)

A. Less systematic factors such as frugality of individual guests may also affect electrical costs

B. Fixed cost will not be affected by the number of days in a month

C. Electrical cost may reflect seasonal factors other than just the variation in occupancy

Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer.(The Singapore dollar is the currency used in Singapore.)

** Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. (Round the variable cost per kilometer to 3 decimal places)

1. Variable cost per kilomer _____________

2. fix cost per year ______________

****Express the variable and fixed costs in the form Y = a + bX. (Round the variable cost per kilometer to 3 decimal places)

3. y= $______________ + $_______________x

If a truck were driven 80,000 kilometers during a year, what total cost would you expect to be incurred?

4. total annual cost ________________

The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were:

Month .....................Guest-Days of Occupancy .................... custodial supplies expense

March ...............................4,000.................................... $7,500

April.................................. 6,500..................................... $8,250

May ................................. 8,000.................................. $10,500

June................................... 10,500................................ $12,000

July.................................... 12,000............................... $13,500

August................................ 9,000 ................................ $10,750

September......................... 7,500.................................... $9,750

*Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days.

1. Using the high-low method, estimate a cost formula for custodial supplies expense where X is the number of guest-days.

y=________________+$______________x

2. Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 11,000 guest-days?

variable cost $________________

Fix cost $________________

total cost $________________

Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company's monthly fixed expense is $50,000.

1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000.

Unit sales --------------- units

:

2. Using the formula method, solve for the unit sales that are required to earn a target profit of $15,000.

Units sold to attain the target profit -------------- units

Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. The company's monthly fixed expense is $4,200.

3.Solve for the company's break-even point in unit sales using the equation method

Break-even point in unit sales--------------------- baskets

4.Solve for the company's break-even point in sales dollars using the equation method and the CM ratio

Break-even point in sales ----------------------

Whirly Corporation’s most recent income statement is shown below:

TOTAL Per Unit

Sales (10,000 units) $350,000 $35.00

Variable expenses 200,000 20.00

Contribution margin 150,000 $15.00

Fixed expenses 135,000

Net operating income $15,000

Prepare a new contribution format income statement under each of the following conditions (consider each case independently):

1. The sales volume increases by 100 units.

Sales total

Variable expenses --------------------

Contribution margin --------------------

Fixed expenses --------------------

Net operating income $ ---------------------

2. The sales volume decreases by 100 units.

Total sales

Variable expenses --------------------

Contribution margin ----------------------

Fixed expenses ----------------------

Net operating income $ --------------------

3. The sales volume is 9,000 units.

total

Sales

Variable expenses --------------------

Contribution margin ------------------------

Fixed expenses ---------------------------

Net operating income $ -----------------------------

daesun lives in chicago and runs a business that sells pianos. ina average year he receives $950,00.00from sales of pianos. of this sales revenue he mus pay the manucacturer a wholesale cost of $500,000, he also pays wages and utility totaling $150,000. if he does not operate this piano businesm he can work in an accounting firm and receive an annual salary of $55,000. he owns his howroom, if he chooses to rent it our he will receive $30,000. in rent per year. assume that the value of this showroom does not depreciate over the year no other cost are incurred in running this piano business.

1. what are Daesuns explicit cost of selling pianos? check all apply

A the wages and utility bills that daesun pays

B the wolesale cost for the pianos that daesun pays the manufacturer

C the salary Daesun coul earn if he worked in an accounting firm

D the rental income Daesun could receive per year if he chose to rent his showroom out

2. what is the accoutning profit of Daesuns piano business

A $300,000.

B $245,000.

C -$215,000 ($215,000 accounting loss)

D $215,000.

3 what is the economic profit of Daesuns piano business

A $950,000

B $245,000.00

C $215,000.000

D -$215,000 ( $215,000 economic loss)

firms such as retail stores demand labor services from their employees. workers such as cashier supply labor services to firms.

1. some retail clothing stores worry uncrupulous cashier wukk sekk items to customers without a receipt and then pocket the cash, stealing from the store because of thiks many employers place a little sign near the register that reads " your purchase if free if you dont get a receipt please see manager" the sign gives customers an incentive to report suspect behavior to management. the sign is an attemp to prevent.

A the principal agent problem

B. shirking

C discontent from residual claims

D an explicit cost.

2. which of the following choices characterizes a corporation

A the ability of the corporate shareholders is limited to value of the stock they own.

B a corporation unlike a person cannot own property or borrow money in its own name.

C. ownership of a corporation resides with one person who is responsible for all debts incurred by the business.

charles has plans to go to a movie and already has a $10. nonrefundable noneexchangeble and transferable ticket now stella whom charles has wanted to date for a long time ask him to a party. charles would prefer to go to the party woth stella and forgo the movie but he doesnt want to waste the $10. 00 he spendt on the movie ticket.

3. from the perspective of economist if charles decides to go to the party with stella he has just.

A. made a choice that was not potimal

B incorrectly allowed a sunk cost to influence his decision

c. correctly ignored a sunk cost

A the number of packs of cigarettes purchased with fall, and total expenditures on cigarettes will also fall.

B the number of packs of cigarettes purchased will rised, but total expenditures on cigarettes will fal

C the number of packs of cigarettes purchased will rise, but total expeditures on cigarettes will fall

D the number of pack of cigarettes purchased will rise and the total expenditures on cigarettes will also rise

so confuse please help

a unit elastic b inelastic c elastic

please help

MediSecure, Inc., produces clear plastic containers for pharmacies in a process that starts in the Molding Department. Data concerning that department's operations in the most recent period appear below:

Beginning work in process:

Units in process 500

Stage of completion with respect to materials 80%

Stage of completion with respect to conversion 40%

Units started into production during the month 153,600

Units completed and transferred out 153,700

Ending work in process:

Units in process 400

Stage of completion with respect to materials 75%

Stage of completion with respect to conversion 20%

Required:

MediSecure uses the FIFO method in its process costing system. Compute the equivalent units of production for the period for the Molding Department.

Determine the amount of manufacturing overhead that would have been applied to units of product during