Question
Blossom Cash, Ltd. Operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat styles from a single
- Blossom Cash, Ltd. Operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat styles from a single distributor at $18 each. All other costs incurred by the company are fixed. Blossom Cash, Ltd. Sells the hats for $40 each.
If fixed costs total $154,000 per year, what is the breakeven point in units? In sales dollars?
What is Blossom Cashs contribution margin ratio? Its variable cost ratio?
- Patricia Johnson owns and operates CraneCakes, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $40 each and feature an edible picture of the child, are shipped throughout the country. A typical months results are as follows:
Sales revenue $764,000
Variable Expenses __573,000__
Contribution Margin 191,000
Fixed Expenses __105,500__
Operating Income _ 85,500__
How many cakes will Patricia Johnson Have to sell if she wants to earn $136,000 in operating income each month?Assuming a 20% tax rate, how many cakes will Patricia hav to sell if she wants to earn $113,200 in net income each month? (Round answer to 0 decimal places, e.g. 5,275.)
- Sunland Sports Hut provides individual instruction and coaching to children participating in the citys baseball, softball, basketball, and soccer youth leagues. Last years results were as follows:
Sales revenue $860,000
Variable expenses 559,000
Contribution Margin 301,000
Fixed expenses 175,583
Operating income $125,417
What is Sunland Sports Huts degree of operating leverage? (Round answer to 2 decimal places, e.g. 52.75)
If Anna Sunland, the companys president, is successful in increasing sales revenue by 5%, by what percent will the Companys operating income increase? (Round answer to 2 decimal places)
After achieving the sales increase in part (b), what will be the companys new operating income? (Round answer to 0 decimal places)
After achieving the sales increase in part (b), what will be the companys new operating leverage? (Round answer to 2 decimal places)
- Susan Wilson owns and operates Sunland, a bakery that creates personalized birthday cakes for a childs first birthday. The cakes, which sell for $56 and feature an edible picture of the child, are shipped throughout the country. A typical months results are as follows:
Sales Revenue $835,520
Variable Expenses 626,640
Contribution Margin 208, 880
Fixed Expenses 112, 980
Operating Income 95,900
What is Sunlands monthly breakeven point in Units?
What is Sunlands Contribution margin ratio?
What is Sunlands monthly breakeven point in sales dollars?
- Ivanhoe Confectionery sells its stack-o-Choc candy bar for $0.8. The variable cost per unit for the candy bar is $0.20; total fixed costs are $150,000.
What is the contribution margin per unit for the stack-o-Choc candy bar? (round to 2 percentage places)
What is the contribution margin ratio for the stack-o-choc candy bar? (Round to 2 percentage places)
What is the breakeven point in units? In sales dollars? (round answers to 0 decimal places. Use your answer of breakeven units to calculate the breakeven point in dollars.)
Another Question
- Ivanhoe Machine Works produces soft serve ice cream freezers. The freezers sell for $18,400 and variable costs total $12,300 per unit. Ivanhoe incurs $3,590,000 in fixed costs during the year. The companys tax rate is 29%
How many freezers must Ivanhoe sell to generate net income of $12,176,500?
- Carla Vista Dish Printery publishes the best-selling Captain Cajun cookbook that sells for $8. The company incurs variable costs of $3 per cookbook and total fixed costs are $247,400.
If the companys tax rate is 20%, how many cookbooks must be sold to generate $178,000 in net income?
- Blossom Recreation Products sells the Amazing Foam Frisbee for $20. The variable cos per unit is $4; fixed costs are $54,000 per month.
What is the breakeven Point in Units? In Sales Dollars? (Use your answer of Breakeven Units to calculate the breakeven point in dollars. Round answers to 0 decimal places, e.g. 5,725.)
How many frisbees must Blossom sell to earn $30,000 in monthly operating income? (Round answer to 0 decimal places e.g. 5,725.)
What operating income must Blossom earn to realize net income of $109,000 assuming that the company is in the 25% tax bracket? (round answer to 0 decimal places, e.g. 5,275.)
How many frisbees must Blossom Sell to earn $109,200 in net income, in monthly income? (Round answer to 0 decimal places, e.g. 5,275)
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