Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4-28 If the contribution margin for Independent Lab stays constant and its fixed costs increase from $8,000 to $12,000, then the labs break-even quantity increases

4-28 If the contribution margin for Independent Lab stays constant and its fixed costs increase from $8,000 to $12,000, then the labs break-even quantity

  1. increases
  2. decreases
  3. staysthesame
  • 432.AGreenerWorldexpectstohave$15,000infixedcosts.Ifitsfixedcostsdonotchangebuttheamounteachmarcherraisesthroughpledgesdeclinesfrom$55to$50anditsvariablecost/unitincreasesfrom$25to$30,howmuchwillitsbreak-evenquantityincrease?

4-36. Millbridge Animal Protective Services (MAPS) is planning its spring awards dinner as a fundraising event. It is planning to charge each attendee $150. Feast Hall, the site of the dinner, will charge MAPS $5,000 for the use of its posh VIP Room and $50 per plate for food. The VIP Room has a capacity of 180 people. Rocky Mount and the Tar Heels (one band) will provide the entertainment for their standard performance fee of $1,000 per night.

  1. How many people would need to attend in order for MAPS to break even?
  2. IfMAPSsells100ticketsforthedinner,whatistheaveragecosttoMAPSforeachpersonwithaticket?
  3. Millbridge Day Care Center operates from Monday to Friday. It has fixed expenses of $18,000 per week and charges each child who attends the program $300 per week. It costs the center $30 per week for supplies and snacks for each child. How many children have to come to the Center each day for it to break even?
  4. If the Center gets a rent increase of $1,000 per week, its break-even point (choose the correct answer)
    1. increases
    2. decreases
    3. stays the same

4-39. Answer the following questions about break-even analysis.

  1. Millbridge Day Care Center operates from Monday to Friday. It has fixed expenses of $18,000 per week and charges each child who attends the program $300 per week. It costs the center $30 per week for supplies and snacks for each child. How many children have to come to the Center each day for it to break even?
  2. If the Center gets a rent increase of $1,000 per week, its break-even point (choose the correct answer)
    1. increases
    2. decreases
    3. stays the same

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Plus

Authors: Robert Libby, Patricia Libby, Daniel Short

7th Edition

0077480015, 9780077480011

More Books

Students also viewed these Accounting questions

Question

Do not go, wait until I come

Answered: 1 week ago

Question

Pay him, do not wait until I sign

Answered: 1 week ago