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I need to know how to solve this problem. Teabucks is a new business that is planning to serve customers tea, sandwiches and baked goods.
I need to know how to solve this problem.
Teabucks is a new business that is planning to serve customers tea, sandwiches and baked goods. Teabucks has been making plans in conjuction with opening the business. Costs have been estimated but the company's management is unsure of what price should be charged to customers. The variable cost per customer is $12, and the total fixed costs per month are $72,000. Teabucks thinks that 9,000 customers will be served every month. If we look at sales for the company as a whole, how many products should Teabucks sell to breakeven assuming sales price for all products are $24? Break Even Quantity If we look at sales for the company as a whole, how much sales should Teabucks make to breakeven? Break Even Point Based on the information given below, calculate the contribution margin and contribution margin ratio for each individual product, and calculate the contribution margin and contribution margin ratio for the company as a whole. Further, determine the net operating income and break even point for the company as a whole Total Sales at Break-Even Tea Total 40,000.00 28,000.00 Sandwiches Total 120,000.00 96,000.00 Ratio 100.00% 70.00% Baked Goods Total 80,000.00 44,000.00 $ Ratio 100.00% 80.00% Total Total 240,000.00 168,000.00 $ Ratio 100.00% 55.00% $ $ $ $ Ratio 100.00% 70.00% $ $ Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income Tea Sandwiches Baked Goods 16.67% 50.00% 33.33% #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ 60,000.00 Based on the information given below, calculate the contribution margin and contribution margin ratio for each individual product, and calculate the contribution margin and contribution margin ratio for the company as a whole. Further, determine the net operating income and break even point for the company as a whole Total Sales at Break-Even Tea Total 60,000.00 42,000.00 Sandwiches Total 90,000.00 72,000.00 Ratio 100.00% 70.00% Baked Goods Total 90,000.00 49,500.00 $ $ Ratio 100.00% 80.00% $ $ Total Total 240,000.00 163,500.00 Ratio 100.00% 55.00% $ $ $ $ Ratio 100.000% 68.125% Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating Income Tea Sandwiches Baked Goods 25.00% 37.50% 37.50% #DIV/0! #DIV/0! #DIV/0! #DIV/0! $ 60,000.00
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