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Do Question 3 only (3.1, 3.2, 3.3, 3.4) - Thank you Bristol Ice Cream has fixed costs of $5 million. For every gallon of ice
Do Question 3 only (3.1, 3.2, 3.3, 3.4) - Thank you
Bristol Ice Cream has fixed costs of $5 million. For every gallon of ice cream, Bristol incurs a variable cost of $10. Bristol sells 700,000 gallons of ice cream a year, and currently breaks even. 1.1 How many gallons of ice cream does Bristol have to sell in order to make $150,000 a year in net profits before tax? 1.2 If Bristol wants to earn a 20% Return on Sales, how much does Bristol have to charge for each gallon of ice cream? 1.3 If Bristol earns a markup 40%. What is Bristol's price for each gallon ice cream? 1.4 Based on the price in 1.3, how many gallons does Bristol have to sell in order to break even? Witner Swimwears makes bullet-proof swimsuits for dolphins. They sell the swimsuits through independent retailers like Staples. Consumers (walking dolphins) pay $200 for each swimsuit, which earns the retailer a markup $80. Witner has $2 million in fixed costs. 2.1 If it costs Witner $70 to make each swimsuit, how many swimsuits does Witner have to sell in order to breakeven? 2.2 If Witner earns a 25% markup on cost, and they sell 300,000 swimsuits a year, how much is Witner's profits before tax? Douglas Cookware makes bullet-proof pots. They earn a 20% markup on their products, which are sold to wholesalers who then sell to retailers. Consumers buy the pots from retailers. Wholesalers generally earn a 30% markup, while retailers earn an even higher 35% markup. Typical retail price for each Douglas pot is $140. Douglas sells 40,000 pots a year. 3.1 What is the wholesaler's selling price per pot? 3.2 What is Douglas' cost of goods sold per pot? 3.3 What is Douglas' total fixed costs if the company earns $30,000 profits before tax? 3.4 What is your answer to 3.1 if Douglas sells 50,000 pots a yearStep by Step Solution
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