Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How to solve question 3 ? Provide a response to each of the questions below. 1. Dough Ducks makes and sells doughnuts.The average selling price

image text in transcribedHow to solve question 3 ?

Provide a response to each of the questions below. 1. Dough Ducks makes and sells doughnuts.The average selling price of a doughnut is $1.30 and the average variable expense per doughnut is $0.35. The average fixed expense per month is $1,500. An average of 2,500 doughnuts are sold each month. What is the CM Ratio for Dough Ducks? 2. Hunter, Inc, produces and sells a single product. The product sells for $250.00 per unit and its variable expense is $97 per unit. The company's monthly fixed expense is $612,612. Determine the monthly break-even in unit sales. bra Bicycle Com pany Contribution Income Statement For the Month of June Ratio 1 00% 40%, 60% CM Per Unit $450 180 $ 270 Total Sales (200 bicycles) Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income $9o,000 36,000 54,000 15,0000 $ 39,00 Using the information above, provide a response to questions 3-6 3. What is the profit impact if Zebra Bicycle can increase unit sales from 200 to 230 by increasing the monthly advertising budget by $10,000? 4. What is the profit impact if Zebra Bicycle can use higher-quality raw materials, thus increasing variable cost per unit by $10, to generate an increase in unit sales from 200 to 300? What is the profit impact if Zebra Bicycle (1) cuts its selling price $20 per unit, (2) increases 5. its advertising budget month? by $10,000 per month, and (3) increases sales from 200 to 350 units per What is the profit impact if Zebra Bicycle (1) pays a $15 sales commission per bike sold instead of paying salespersons fiat salaries that currently total $3,000 per month, and (2) increases sales from 200 to 275 units per mo nth

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

Auditing Principles Practice And Problems

Authors: Jagdish Prakash

1st Edition

9327244745, 978-9327244748

More Books

Students also viewed these Accounting questions