Question
I need some help with these questions: 5) Fairfield Company management has budgeted the following amounts for its next fiscal year. Total fixed expenses $
I need some help with these questions:
5)
Fairfield Company management has budgeted the following amounts for its next fiscal year.
Total fixed expenses | $ 832,000 |
sale price per unit | $40 |
variable expenses per unit | $25 |
if Fairfield Company spends an additional $30,000 on advertising , sales volume should increase by 2,500 units.
what effect will this have on operating income ? and by how much?
6). Green patsures golf course is planning for the coming season. Investors would like to earn a 10% return on the company's $40 million of assets.
the company primarly incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $ 15,000,000 for the golfing season. About 400,000 golfers are expected each year.
variable costs are about $20 per golfer. The green Patsure golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost plucing approach, what price should Green Patsure charge for round golf ?
7) Darren Company has three product lines : D, E and F the following information is available:
D | E | F | |
Sales Revenue | $70,000 | $40,000 | $28,000 |
Variable expenses | $40,000 | $21,000 | $12,000 |
Contribution margin | $30,000 | $19,000 | $16,000 |
Fixed expenses | $12,000 | $15,000 | $17,000 |
perating income ( loss) | $18,000 | $4,000 | $(1,000) |
Darren Company is thinking of dropping product line F because it is reporting an operating income loss. All fixed costs are unavoidable. Assuminh Darren company drops line F and is able to double the production and sales of product line E without increasing fixed costs. What affect will this have on operating income? by how much?
8) The Nut house sells almonds, cashews, and pistachios. They sold 10,000 cans last year.Pistachio outsold cashews by a marging of 2 to 1 in cans.Sales of almonds were half the sales cashews in cans. Fixed costs for the Nut House are 20,000 and additional information follows.
Products | Unit sales prices | Unit variable cost |
Almonds | $8.00 | $4.00 |
Cashews | $10.00 | $5.00 |
Pistachio | $6.00 | $4.00 |
What is the breaken sales volume and dollars foreach nut ( rounded )?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started