Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Belleterre Tiles makes tiles for flooring and other applications. The CFO of the company provides you with the following information for the period October through
Belleterre Tiles makes tiles for flooring and other applications. The CFO of the company provides you with the following information for the period October through December, the company's third quarter:
Belleterre TileRevenues and CostsThird QuarterTotal quantity sold126,700tilesTotal revenues$ 486,528Total variable costs369,964Total fixed costs110,400Required:
- What is the average selling price per tile?
Note: Round your final answer to 2 decimal places.
- What is the average variable cost per tile?
Note: Round your final answer to 2 decimal places.
- What is the average contribution margin per tile?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
- What is the current operating profit for a quarter?
Note: Do not round intermediate calculations.
- What is the break-even point?
Note: Do not round intermediate calculations.
- The CFO tells you that the company owners have said that unless the quarterly operating profit exceeds $15,180, they will liquidate the company. How many tiles would have to be sold in a quarter for Belleterre Tile to earn $15,180 in quarterly operating profit?
Note: Do not round intermediate calculations.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started