Nicholea Water LLC dispenses its product Nature's Pure Water via vending machines with most current locations...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Nicholea Water LLC dispenses its product Nature's Pure Water via vending machines with most current locations at food markets and pharmacy or chemist stores. The average monthly fixed cost per site is $900, while each gallon costs 18¢ to purify and sells for 30c. a. Determine the monthly sales volume needed to break even. b. Nicholea's president is negotiating for a sole-source contract with a municipal government where several sites will dispense larger amounts. The fixed cost and purification costs will be the same, but the sales price per gallon will be 40¢ for the first 7,000 gallons per month and 20¢ for all above this threshold level. Determine the monthly breakeven volume, at each site, needed to break even. Nicholea Water LLC dispenses its product Nature's Pure Water via vending machines with most current locations at food markets and pharmacy or chemist stores. The average monthly fixed cost per site is $900, while each gallon costs 18¢ to purify and sells for 30c. a. Determine the monthly sales volume needed to break even. b. Nicholea's president is negotiating for a sole-source contract with a municipal government where several sites will dispense larger amounts. The fixed cost and purification costs will be the same, but the sales price per gallon will be 40¢ for the first 7,000 gallons per month and 20¢ for all above this threshold level. Determine the monthly breakeven volume, at each site, needed to break even.
Expert Answer:
Answer rating: 100% (QA)
aThe break even pointquantity is calculated using the formula ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
Holt Company purchased a computer for $8,000 on January 1, 2009. Straight-line depreciation is used, based on a 5-year life and a $1,000 salvage value . In 2011, the estimates are revised. Holt now...
-
Kyle Benson is the CEO of Macartys Electronics. Benson is an expert engineer but a novice in accounting. He asks you to explain (1) the bases for comparison in analyzing Macartys financial...
-
Report on Business magazine conducts a survey by mailing a questionnaire to 5000 people known to invest in securities. On the basis of the results, the magazine editors conclude that most investors...
-
Define control environment. What do you think the control environment would be like in a small house-cleaning service with ten part-time employees run by a husband and wife?
-
Morey, Inc., has the following plant asset accounts: Land, Buildings, and Equipment, with a separate accumulated depreciation account for each of these except Land. Morey completed the following...
-
Can someone please help me answer this ? The specific question is at the bottom. Using the married filing jointly status and their income and expensestatement, calculate the 2014 tax liability for...
-
Holcomb Candles, Inc. manufactures decorative candles and has contracted with a national retailer to supply a set of special holiday candles to its 8,500 stores. These include large jars, small jars,...
-
The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The data below gives the value and the annual revenue for 15 major sport teams. The data are
-
In a two-way ANOVA, the P-value for interactions is P = 0.45, and the P-values for the main effects are P = 0.023 for the row factor and P = 0.34 for the column factor. a. Can you reject the...
-
Pierre Garvey, the CEO of Revel Information Technology, sat back in his chair and looked at his assistants. He frowned. My son has been diagnosed with MLD, he said. They all looked at him with shock....
-
If the sample means are widely spread, the value of SSTr will tend to be large. In Exercises 912, determine whether the statement is true or false. If the statement is false, rewrite it as a true...
-
On April 14, 2010, Russian investigators raided the Moscow offices of Hewlett Packard (HP). They did so at the request of German prosecutors who were examining whether HP had paid bribes totaling...
-
In one-way ANOVA, the effect of unequal variances can be substantial when the design is ____________________ . In Exercises 7 and 8, fill in each blank with the appropriate word or phrase.
-
Write the fraction as a decimal Choose the correct answer b OA 0 3 B 0 333 OC 0 3 OD 0 03
-
Borrowing costs should be recognised as an expense and charged to the profit and loss account of the period in which they are incurred : A. If the borrowing costs relate to qualifying asset B. If the...
-
The statement of cash flows classifies cash expenditures for interest expense as an operating activity but classifies cash expenditures to redeem debt as a financing activity. Explain this apparent...
-
Turner Construction Company agreed on January 1, Year 1, to construct an observatory for Dartmouth College for $120 million. Dartmouth College must pay $30 million on signing and $30 million at the...
-
The financial statements of Ford Motor Company reveal the information regarding income taxes shown in Exhibit 2.8. Required a. Assuming that Ford had no significant permanent differences between book...
-
(Average compounding rate) WindyRoad is an investment company which has two mutual funds. The WindyRoad Dull Fund invests in boring corporate bonds, and its Lively Fund invests in high-risk,...
-
What are the differences between merchandisers and manufacturers?(Appendix)
-
(Appendix) Compute ending inventory and cost of goods sold under a periodic inventory system. - Under a periodic inventory system, the inventory costing methods are applied as if all purchases during...
Study smarter with the SolutionInn App