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Can you answer this question in detail please umunnuu L, ununurnnuu 0111111.: COST VOLUME PROFIT ANALYSIS, PART II (contribution margin income statement multiple product CVP

Can you answer this question in detail please

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umunnuu L, ununurnnuu 0111111.: COST VOLUME PROFIT ANALYSIS, PART II (contribution margin income statement multiple product CVP operating leverage constrai Malarie runs a drink stand where she sells 2 products lemonade and smoothies. The following budgeted information is available per unit of each product: PER UNIT INFORMATION Lemonade Smoothie Selling price $2.00 $3.0 Variable costs 1.20 Contribution margin $1 .4 $1.80 Malarie has the following fixed costs per season as well: Annual xed costs: Cost of goods sold (depreciation) $250.00 Advertising $100.00 1. Malarie wants to approach her father for money with which to purchase a new deluxe blel She projects sales for the upcoming season of 300 lemonades and 200 smoothies. Pre pro-forma income statement in traditional and contribution-margin formats. WHY is the contribution-margin format better for decision making? 2. Malarie advertises by placing signs at strategic points in business and around the neighborhood. Which product should she emphasize? WHY? 3. What if a Smoothie took 1.5 minutes to make while a Lemonade took only 1 minute to ma Assuming that the blender can only operate for a certain number of hours, would this cl your answer to #2? 4. Malarie is exploring the possibility of lowering her price on smoothies to $2.75. If she doe she estimates that her demand will rise from 200 to 240. If she does this: a) What will be the incremental revenues? (the benefits) b) What will be the incremental costs? (the costs) c) Your thoughts on this idea? 5. Assume that Malarie actually sold 350 lemonades and 230 smoothies and showed a prof $500. What are your thoughts on her performance for the period? Did she operate efc and control costs well? WHY

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