Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Break even.pdf The Power broderies. The memohon Sanit. Doetinere blows Towe 12.000 Teront retrouincome IN | Dermee woberfested on HOME de madereva wa wanaw Contribution

image text in transcribed

image text in transcribed

image text in transcribed

Break even.pdf The Power broderies. The memohon Sanit. Doetinere blows Towe 12.000 Teront retrouincome IN | Dermee woberfested on HOME de madereva wa wanaw Contribution Fundorte Contribution on Determine the point die Dr. Hortera Combo Me T Man ... Twoice Comebution margir Frederom Tout p2:37 + 145% 26.01.17 Umniah Orange JO E5-9 Compute break-even point The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows. Total Variable cost $2,000 Total Fixed costs $6,000 Actual sales 20000 Target net profit ( Net income) 25000 Instructions Determine the inn's break-even point in (a) number of rented rooms per month and (b) dollars. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) Determine the inn's break-even point in number of rented rooms per month Contribution margin per room Rent per room (selling price ) Variable cost per room Contribution margin per room Contribution margin ratio Contrib p2:36 +145% 2017 Umniah Orange JO Contribution margin ratio (%) Fixed costs Break-even point in rooms Fixed costs Contribution margin per room Break-even point in rooms (b) Determine the inn's break-even point in dollars. Break-even point in dollars Break-even point in rooms Rent per room Break-cven point in dollars OR Fixed costs Contribution margin ratio Break-even point in dollars (c) Compute the contribution margin ratio and the margin of safety ratio. (Round to the nearest full pero Contribution margin ratio Unit contribution margin Unit selling price Contribution margin ratio Margin of safcty ratio Total sales Break-even sales Margin of safety (dollars) Total sales Margin of safety ratio (%) Margin of safety (units) (d) Determine the sales dollars required to cam net income of $25000. Sales dollars required to earn tarqet income Fixed costs Target income Total fixed cost + target income Contribution margin ratio Sales dollars required (e) Determine the following. Fixed costs per room Variable cost per room Total Cost per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Assurance And Auditing

Authors: Thomas Nelson

1st Edition

0170111342, 978-0170111348

More Books

Students also viewed these Accounting questions

Question

Are my points each supported by at least two subpoints?

Answered: 1 week ago