ACC3300-Fall 2023 - Chapter 3 Bones Assignment SHOW ALL WORK AND BOXCOR CIRCLE YOLR HNALANSWERS! Round all final answers to 2 decimal places, if applicable. Exercise 1) Good'n'Yummy produces and sells some tasty TV dinners (Buffalo Burger, Crab Cake, and a Pioza Meal). Last year, Good'n'Yummy sold 14,154 Buffalo Burger Meals, 42,462 Pizza Meals, and 28,30s Crab Cahe Meals. Fixed eosts-during the last year were 530,571.53. Informaion oo the mo products is as folions: Some of the employees at Good'n'Yummy came up with a greas idea to add a Meatloaf Meal, a Hot Dog Meal, a Fish Stick Meal, and a Veggie Burger Mealli! The company estimates that 7,077 Meatloaf Meals can be sold ar a price of 57,05 and a contribution margin per unit of 53.85 . The company estimates that 63.6937 Hot Dog Meals can be iold with a markup of 104 percent of variable costs. The company estimates that 49,539 Fish Stick Meals can be sold ar a price of 56.84 and a variable cost per unit of $3.07. The corapany estimates that 21,231 Vegete Burger Meals can be sold and will have a variable cost of $2.97 and a contribution margin ratio of 67 percent. Fixed cost will be incteased by $9,902,66 doe to the addition of the Meatloaf Meal, $13,132.13 for the addition of the Hot Dog Meal, $17,001.01 for the addition of the Fish Stick. Meal, and $10,789.87 for the addition of the Veggie Burger Meal. Total variable costs for the Hos Dog Meals are estimated to be \$175, 155.75. Assume that anticipatod sales cifother products, as well as their prices and variable costs, will romain the same. Requinut: 1. What is the sales mix of Buffalo Burger, Pizan, Meatloaf, Crab Cake, Veggie Burger, Fish Suick, and Hot Dog Meals? 2. How many anits of euch product does the company have to sell to break-even assuming the same sales mix? 3. Prepare a contribution margin opcrating income statement for Good'n'Yummy for the coming year. 4. What is the overall contrithution margin ratio? 5. What is the margin of safety for the-coming year in sales dollars? 6. By how much is Good'n'Yummy better or worse off with the addition of these four tasty meals? Show work Exeretie 2) Greathouse Company's fiscal year ends every June 30". Darlene, the owner, is trying to decide which route she should take for the remaining three quarters of the fiscal year. Before the start of the fiscal year, her company made the following estimates on her expensive products: Selling. Price $7,000 per unit, Variable Costs $2,000 per unif; and Fixed Costs (in tosal) $5,560,000. As of September 30*, Darlene was very disappointed with her first-quarter income statement. She had only sold 300 units of her expensive products at the 57,000 selling price. While she was drinking a bottle of wine to calm herself down, she ask her accountants to determine whan the net income would be for the entire fiscal year if she chose one of the following mutually exclusive alternatives below (she named them after the wines she had that night!): The Merlot Option: In this option, Darlene wants to reduce the selling price by 15%. She thinks that at this rodaced price, she could sell 1,400 units during the retnainder of the year. All other costs would stay as budgeted: The Chardonnay Option: in this option, Darlene wants to use erappy materials, which would lower the variable cost per unit by $750. Because of this reduction in cost, the sellitg price will also be reduced by $500. She believes that she could sell 1,130 units during the remainder of the year. The White Zinfandel Option: In this option, Darlene thinks she could sell 1,500 units during the femainder of the year if she reduced fixed costs by 5% and lowered the selling price by 25%. Variable cost would remain as bodgeted. Reguired: 1. If no changes are made to the selling price or cost structure, determine the number of units that Greathouse Company must sell (a) to break even and (b) to achieve a net income objective of $900,000. Assume that her overall income tax rate is 40%. 2. Prepare Contribution Margin Format Income Statements showing Greathouse Company's Net Lrcome foe the fiscal year ending June 30m under each of her wine based alternatives, Again, each one is mutually exclusive of the other, Which wine based alternative should Darlene acceptidrink? ACC3300-Fall 2023 - Chapter 3 Bones Assignment SHOW ALL WORK AND BOXCOR CIRCLE YOLR HNALANSWERS! Round all final answers to 2 decimal places, if applicable. Exercise 1) Good'n'Yummy produces and sells some tasty TV dinners (Buffalo Burger, Crab Cake, and a Pioza Meal). Last year, Good'n'Yummy sold 14,154 Buffalo Burger Meals, 42,462 Pizza Meals, and 28,30s Crab Cahe Meals. Fixed eosts-during the last year were 530,571.53. Informaion oo the mo products is as folions: Some of the employees at Good'n'Yummy came up with a greas idea to add a Meatloaf Meal, a Hot Dog Meal, a Fish Stick Meal, and a Veggie Burger Mealli! The company estimates that 7,077 Meatloaf Meals can be sold ar a price of 57,05 and a contribution margin per unit of 53.85 . The company estimates that 63.6937 Hot Dog Meals can be iold with a markup of 104 percent of variable costs. The company estimates that 49,539 Fish Stick Meals can be sold ar a price of 56.84 and a variable cost per unit of $3.07. The corapany estimates that 21,231 Vegete Burger Meals can be sold and will have a variable cost of $2.97 and a contribution margin ratio of 67 percent. Fixed cost will be incteased by $9,902,66 doe to the addition of the Meatloaf Meal, $13,132.13 for the addition of the Hot Dog Meal, $17,001.01 for the addition of the Fish Stick. Meal, and $10,789.87 for the addition of the Veggie Burger Meal. Total variable costs for the Hos Dog Meals are estimated to be \$175, 155.75. Assume that anticipatod sales cifother products, as well as their prices and variable costs, will romain the same. Requinut: 1. What is the sales mix of Buffalo Burger, Pizan, Meatloaf, Crab Cake, Veggie Burger, Fish Suick, and Hot Dog Meals? 2. How many anits of euch product does the company have to sell to break-even assuming the same sales mix? 3. Prepare a contribution margin opcrating income statement for Good'n'Yummy for the coming year. 4. What is the overall contrithution margin ratio? 5. What is the margin of safety for the-coming year in sales dollars? 6. By how much is Good'n'Yummy better or worse off with the addition of these four tasty meals? Show work Exeretie 2) Greathouse Company's fiscal year ends every June 30". Darlene, the owner, is trying to decide which route she should take for the remaining three quarters of the fiscal year. Before the start of the fiscal year, her company made the following estimates on her expensive products: Selling. Price $7,000 per unit, Variable Costs $2,000 per unif; and Fixed Costs (in tosal) $5,560,000. As of September 30*, Darlene was very disappointed with her first-quarter income statement. She had only sold 300 units of her expensive products at the 57,000 selling price. While she was drinking a bottle of wine to calm herself down, she ask her accountants to determine whan the net income would be for the entire fiscal year if she chose one of the following mutually exclusive alternatives below (she named them after the wines she had that night!): The Merlot Option: In this option, Darlene wants to reduce the selling price by 15%. She thinks that at this rodaced price, she could sell 1,400 units during the retnainder of the year. All other costs would stay as budgeted: The Chardonnay Option: in this option, Darlene wants to use erappy materials, which would lower the variable cost per unit by $750. Because of this reduction in cost, the sellitg price will also be reduced by $500. She believes that she could sell 1,130 units during the remainder of the year. The White Zinfandel Option: In this option, Darlene thinks she could sell 1,500 units during the femainder of the year if she reduced fixed costs by 5% and lowered the selling price by 25%. Variable cost would remain as bodgeted. Reguired: 1. If no changes are made to the selling price or cost structure, determine the number of units that Greathouse Company must sell (a) to break even and (b) to achieve a net income objective of $900,000. Assume that her overall income tax rate is 40%. 2. Prepare Contribution Margin Format Income Statements showing Greathouse Company's Net Lrcome foe the fiscal year ending June 30m under each of her wine based alternatives, Again, each one is mutually exclusive of the other, Which wine based alternative should Darlene acceptidrink