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Can I get some help with this? It's for my final due tomorrow Question 5 (12 Points) John Webb recently graduated from mortuary school. He

Can I get some help with this? It's for my final due tomorrow

image text in transcribed Question 5 (12 Points) John Webb recently graduated from mortuary school. He is considering opening his own funeral home. A funeral home is a high-fixed cost business, as it requires considerable expenditures for facilities, labor, and equipment, no matter how many families are served. Assume the annual fixed cost of operations is $800,000. Further assume that the only significant variable cost relates to burial containers like urns and caskets. An average casket costs $1,200. John's banker has asked a variety of questions in contemplation of providing a loan for this business. Required: Provide the solution to each of the following questions. (a) If the average family is charged $6,000 for services and a burial container, how many families must be served to clear the break-even point? (b) If the banker believes John will only serve 100 families during the first year in business, how much will the business lose during its first year of operation? (c) If John believes his profits will be at least $100,000 during the first year, how much is he anticipating for total revenue? (d) The banker has suggested that John can reduce his fixed costs by $150,000 if he will not buy any vehicles. John can instead rent vehicles as needed. The variable cost of renting is $700 per family served. Will this suggestion help John reach the break-even point sooner? Hint: Think CVP Question 6 (9 points) Rosie's manufactures silk flowers. ABC Company has approached Rosie's with a proposal to buy 2,000 silk flowers for $4.00 each. Regular customers are charged $4.25 for each flower. Rosie's has the necessary capacity. The following costs are associated annually with silk flowers with the company's normal production and sales of 10,000 flowers: Direct material Direct labor Manufacturing overhead Total $21,000 13,000 9,000 $43,000 Forty percent of the manufacturing overhead is variable. All fixed overhead is allocated equally to all products produced. Requirements: Prepare an incremental analysis schedule to demonstrate what amount operating income would increase or decrease as a result of accepting the special order. Hint: think differences between accepting the order or not. Question 5 (12% points) a. ______________________________________________________ b. ______________________________________________________ c. _______________________________________________________ d. _______________________________________________________ Question 6: 9 % points: Rosie's Corporation Incremental Analysis Special Order

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