Question
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
- increases
- decreases
- 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.
- How many people would need to attend in order for MAPS to break even?
- IfMAPSsells100ticketsforthedinner,whatistheaveragecosttoMAPSforeachpersonwithaticket?
- 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?
- If the Center gets a rent increase of $1,000 per week, its break-even point (choose the correct answer)
- increases
- decreases
- stays the same
4-39. Answer the following questions about break-even analysis.
- 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?
- If the Center gets a rent increase of $1,000 per week, its break-even point (choose the correct answer)
- increases
- decreases
- stays the same
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