College Pizza delivers pizzas to the dormitories and apartments near a major state university The companys annual fixed expenses are $50,000 The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza (In the following requirements, ignore income taxes ) Required 1 Using the contribution margin approach, compute the companys break even point in units (pizzas) 2 What is the contribution margin ratio (Round your answer to 1 decimal place ) 3 Compute the break even sales revenue Use the contribution margin ratio in your calculation 4 How many pizzas must the company sell to earn a target profit of $61,000 Use the equation method Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery The firms fixed costs are 3,200,000 p per year The variable cost of each component is 1,700 p , and the components are sold for 3,900 p each The company sold 5,700 components during the prior year ( p denotes the peso, Argentinas national currency Several countries use the peso as their monetary unit On the day this exercise was written, Argentinas peso was worth 0 104 U S dollar In the following requirements, ignore income taxes ) Required 1 Compute the break even point in units (Round your answer to the nearest whole number ) 2 What will the new break even point be if fixed costs increase by 5 percent (Round your answer to the nearest whole number ) 3 What was the companys net income for the prior year 4 The sales manager believes that a reduction in the sales price to 3,400 p will result in orders for 800 more components each year What will the break even point be if the price is changed (Round your answer to the nearest whole number ) 5 Should the price change discussed in requirement 4 be made Tims Bicycle Shop sells 21 speed bicycles For purposes of a cost volume profit analysis, the shop owner has divided sales into two categories, as follows Product Type Sales Price Invoice Cost Sales Commission High quality $ 1,250 $ 540 $ 80 Medium quality 620 320 70 Three quarters of the shops sales are medium quality bikes The shops annual fixed expenses are $191,400 (In the following requirements, ignore income taxes ) Required 1 Compute the unit contribution margin for each product type 2 What is the shops sales mix 3 Compute the weighted average unit contribution margin, assuming a constant sales mix 4 What is the shops break even sales volume in dollars Assume a constant sales mix 5 How many bicycles of each type must be sold to earn a target net income of $99,000 Assume a constant sales mix CollegePak Company produced and sold 71,000 backpacks during the year just ended at an average price of $31 per unit Variable manufacturing costs were $12 50 per unit, and variable marketing costs were $5 48 per unit sold Fixed costs amounted to $541,000 for manufacturing and $216,800 for marketing There was no year end work in process inventory (Ignore income taxes ) Required 1 Compute CollegePaks break even point in sales dollars for the year (Do not round intermediate calculations Round your final answer up to the nearest whole dollar ) 2 Compute the number of sales units required to earn a net income of $545,000 during the year (Do not round intermediate calculations Round your final answer up to the nearest whole dollar ) 3 CollegePak's variable manufacturing costs are expected to increase by 10 percent in the coming year Compute the firms break even point in sales dollars for the coming year (Do not round intermediate calculations Round your final answer up to the nearest whole dollar ) 4 If CollegePaks variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same contribution margin ratio in the coming year (Do not round intermediate calculations Round your final answer to 2 decimal places )

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College Pizza delivers pizzas to the dormitories and apartments near a major state university. The companys annual fixed expenses are $50,000. The sales price of

College Pizza delivers pizzas to the dormitories and apartments near a major state university. The companys annual fixed expenses are $50,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the following requirements, ignore income taxes.) Required: 1. Using the contribution-margin approach, compute the companys break-even point in units (pizzas). 2. What is the contribution-margin ratio? (Round your answer to 1 decimal place.)

3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation. 4. How many pizzas must the company sell to earn a target profit of $61,000? Use the equation method.

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firms fixed costs are 3,200,000 p per year. The variable cost of each component is 1,700 p, and the components are sold for 3,900 p each. The company sold 5,700 components during the prior year. (p denotes the peso, Argentinas national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentinas peso was worth 0.104 U.S. dollar. In the following requirements, ignore income taxes.) Required: 1. Compute the break-even point in units. (Round your answer to the nearest whole number.) 2. What will the new break-even point be if fixed costs increase by 5 percent? (Round your answer to the nearest whole number.) 3. What was the companys net income for the prior year? 4. The sales manager believes that a reduction in the sales price to 3,400 p will result in orders for 800 more components each year. What will the break-even point be if the price is changed? (Round your answer to the nearest whole number.) 5. Should the price change discussed in requirement 4 be made?

Tims Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows:

Product Type	Sales Price		Invoice Cost		Sales Commission
High-quality	$	1,250	$	540		$	80
Medium-quality		620		320			70

Three-quarters of the shops sales are medium-quality bikes. The shops annual fixed expenses are $191,400. (In the following requirements, ignore income taxes.) Required: 1. Compute the unit contribution margin for each product type. 2. What is the shops sales mix? 3. Compute the weighted-average unit contribution margin, assuming a constant sales mix. 4. What is the shops break-even sales volume in dollars? Assume a constant sales mix. 5. How many bicycles of each type must be sold to earn a target net income of $99,000? Assume a constant sales mix.

CollegePak Company produced and sold 71,000 backpacks during the year just ended at an average price of $31 per unit. Variable manufacturing costs were $12.50 per unit, and variable marketing costs were $5.48 per unit sold. Fixed costs amounted to $541,000 for manufacturing and $216,800 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) Required: 1. Compute CollegePaks break-even point in sales dollars for the year. (Do not round intermediate calculations. Round your final answer up to the nearest whole dollar.) 2. Compute the number of sales units required to earn a net income of $545,000 during the year. (Do not round intermediate calculations. Round your final answer up to the nearest whole dollar.) 3. CollegePak's variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the firms break-even point in sales dollars for the coming year. (Do not round intermediate calculations. Round your final answer up to the nearest whole dollar.) 4. If CollegePaks variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same contribution-margin ratio in the coming year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)