6.67 points QUESTION 10 1. Refer to the Excel spreadsheet (available in Blackboard): a311 Chat 5 Quiz Data.xlsx for required information What is the monthly break-even number of cases of Bubbs? Round to the nearest whole number. 6.67 points QUESTION 11 1. Refer to the Excel spreadsheet (available in Blackboard) a311 Chpt 5 Quiz Data.xlsx for required information. What is the fixed production cost per case of Bubbs based on the current average sales volume per month? Round to four decimals. I 6.67 points QUESTION 12 1. Refer to the Excel spreadsheet (available in Blackboard): a311 Chat Quiz Data.xlsx for required information Reconsider the product line Income Statement shown in Table 1. Using the contribution margin approach what is the Bubbs total contribution margin for the year? Use the data in this spread-sheet to answer the Chapter 5 Quiz (quiz #4) Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $5.25 per case, has not had the market success that managers expected, and the company is considering dropping Bubbs. Additional Information: 1. The product-line Income statement for the past 12 months is shown in Table 1. 2. All products at Luke receive an allocation of corporate overhead costs, which is computed as 5 percent of the product's gross revenue. The 5 percent rate is based on the most recent year's corporate costs divided by corporate revenues. Data on corporate costs and revenues for the past two years are shown in Table 2. You may assume the fixed corporate overhead is $1,454,000 in each year. None of these fixed costs are specifically traceable to Bubbs. 3. Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given above, Mr. Andre provides you with the data in Table 3 on the Bubbs monthly product costs. 4. Table 4 presents the results of a regression analysis of the data in Table 3. J K L 3 $14,682,150 Table 1. Product Line Income Statement for Bubbs - 12 months Revenue Costs Manufacturing costs $14,440,395 Allocated corporate costs 734,108 Product line margin Allowance for tax (@20%) Product-line profit (loss) + 15,174,503 (5492,353) 98,470 (5393,883) Table 2. Corporate Revenues Most recent year $106,750,000 Previous year $76,200,000 Fixed Corporate OH is $1,454,000 in each year OH Costs $5,337,500 $4,221,000 1 2 4 Table 3. Monthly Production and Production Costs Month Cases 207,000 $ 2. 217,200 $ 3 214,800 $ 4 228,000 $ 5 224,400 $ 6 237,000 $ 220,200 $ 8 247 200$ 19 238,800 $ 10 252,600 $ 250,2005 12 259,200 $ Prod. Costs 1,139,828 1,161,328 1,169,981 1,185,523 1,187,827 1,203,673 1,183,699 1,226,774 1,205,226 1.287,325 1,241,760 1,272,451 Table 4. Regression Analysis of Table 3 Monthly Production Data Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.962 0.925 0.918 12,833.693 12.000 1 Stat Intercept Cases Coefficients 613,850 2.5474 Standard Error 53,525 0.23 11.47 11.12 P-value 0.0000 0.0000 QUESTION 13 -Refer to the Excel spreadsheet (available in Blackboard): a311 Chpt 5 Quiz Data.xlsx for required information. Reconsider the product line Income Statement shown in Table 1. Using the contribution margin approach, deduct the estimated annual fixed production costs from the total contribution margin to determine a new product-line margin. If the product line contribution margin is a loss, express your answer as a negative number, such as -5000. QUESTION 14 Refer to the Excel spreadsheet (available in Blackboard): a311 Chpt 5 Quiz Data.xlsx for required information. Assume the product-line margin for Bubbs using the contribution margin approach is negative $300.000. If Luke allocates fixed corporate overhead at a rate of 1.36% of Revenues, what is Bubbs profit or loss after tax? if the product line after tax income is a loss, express your answer as a negative number, such as-5000, QUESTION 15 Refer to the Excel spreadsheet (available in Blackboard): a311 Chpt 5 Quiz Data.xlsx for required information. Using the approach given in Table 1, what would the price per case of Bubbs have to be for the product line margin to break even? Assume no change in the number of units sold. Remember to allocate Corporate OH at 5 percent of Revenues. Round to the nearest 0.001 per case. 6.67 points QUESTION 10 1. Refer to the Excel spreadsheet (available in Blackboard): a311 Chat 5 Quiz Data.xlsx for required information What is the monthly break-even number of cases of Bubbs? Round to the nearest whole number. 6.67 points QUESTION 11 1. Refer to the Excel spreadsheet (available in Blackboard) a311 Chpt 5 Quiz Data.xlsx for required information. What is the fixed production cost per case of Bubbs based on the current average sales volume per month? Round to four decimals. I 6.67 points QUESTION 12 1. Refer to the Excel spreadsheet (available in Blackboard): a311 Chat Quiz Data.xlsx for required information Reconsider the product line Income Statement shown in Table 1. Using the contribution margin approach what is the Bubbs total contribution margin for the year? Use the data in this spread-sheet to answer the Chapter 5 Quiz (quiz #4) Luke Corporation produces a variety of products, each within their own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The product, which sells for $5.25 per case, has not had the market success that managers expected, and the company is considering dropping Bubbs. Additional Information: 1. The product-line Income statement for the past 12 months is shown in Table 1. 2. All products at Luke receive an allocation of corporate overhead costs, which is computed as 5 percent of the product's gross revenue. The 5 percent rate is based on the most recent year's corporate costs divided by corporate revenues. Data on corporate costs and revenues for the past two years are shown in Table 2. You may assume the fixed corporate overhead is $1,454,000 in each year. None of these fixed costs are specifically traceable to Bubbs. 3. Roy O. Andre, the product manager for Bubbs, is concerned about whether the product will be dropped by the company and has employed you as a financial consultant to help with some analysis. In addition to the information given above, Mr. Andre provides you with the data in Table 3 on the Bubbs monthly product costs. 4. Table 4 presents the results of a regression analysis of the data in Table 3. J K L 3 $14,682,150 Table 1. Product Line Income Statement for Bubbs - 12 months Revenue Costs Manufacturing costs $14,440,395 Allocated corporate costs 734,108 Product line margin Allowance for tax (@20%) Product-line profit (loss) + 15,174,503 (5492,353) 98,470 (5393,883) Table 2. Corporate Revenues Most recent year $106,750,000 Previous year $76,200,000 Fixed Corporate OH is $1,454,000 in each year OH Costs $5,337,500 $4,221,000 1 2 4 Table 3. Monthly Production and Production Costs Month Cases 207,000 $ 2. 217,200 $ 3 214,800 $ 4 228,000 $ 5 224,400 $ 6 237,000 $ 220,200 $ 8 247 200$ 19 238,800 $ 10 252,600 $ 250,2005 12 259,200 $ Prod. Costs 1,139,828 1,161,328 1,169,981 1,185,523 1,187,827 1,203,673 1,183,699 1,226,774 1,205,226 1.287,325 1,241,760 1,272,451 Table 4. Regression Analysis of Table 3 Monthly Production Data Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.962 0.925 0.918 12,833.693 12.000 1 Stat Intercept Cases Coefficients 613,850 2.5474 Standard Error 53,525 0.23 11.47 11.12 P-value 0.0000 0.0000 QUESTION 13 -Refer to the Excel spreadsheet (available in Blackboard): a311 Chpt 5 Quiz Data.xlsx for required information. Reconsider the product line Income Statement shown in Table 1. Using the contribution margin approach, deduct the estimated annual fixed production costs from the total contribution margin to determine a new product-line margin. If the product line contribution margin is a loss, express your answer as a negative number, such as -5000. QUESTION 14 Refer to the Excel spreadsheet (available in Blackboard): a311 Chpt 5 Quiz Data.xlsx for required information. Assume the product-line margin for Bubbs using the contribution margin approach is negative $300.000. If Luke allocates fixed corporate overhead at a rate of 1.36% of Revenues, what is Bubbs profit or loss after tax? if the product line after tax income is a loss, express your answer as a negative number, such as-5000, QUESTION 15 Refer to the Excel spreadsheet (available in Blackboard): a311 Chpt 5 Quiz Data.xlsx for required information. Using the approach given in Table 1, what would the price per case of Bubbs have to be for the product line margin to break even? Assume no change in the number of units sold. Remember to allocate Corporate OH at 5 percent of Revenues. Round to the nearest 0.001 per case