Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if you know solve it if you do not know close the question. Problem HydroHappy management wants to examine the profitability of its small retail

if you know solve it if you do not know close the question.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem HydroHappy management wants to examine the profitability of its small retail shop near the beach in St. Thomas, Virgin Islands. The shop rents and sells two unique products, boogie boards and skim boards, referred to by the locals as a "Boogie" and a "Skimmy." Even though the rental operations are profitable, the retail operations may not be covering the related costs. On average, the company sells two Skimmy board for every Boogie. Forecasted data is presented here for incremental levels of volume, the unit selling price (SP), unit variable cost (VC), and total fixed costs for the retail operations. Units 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 Boogies Unit Si Unit VC Units $ 32.00 $ 12.00 32.00 12.00 40 32.00 12.00 80 32.00 12.00 120 32.00 12.00 160 32.00 12.00 200 32.00 12.00 240 32.00 12.00 280 32.00 12.00 320 32.00 12.00 360 32.00 12.00 400 32.00 12.00 440 32.00 12.00 480 32.00 12.00 520 32.00 12.00 560 32.00 12.00 600 32.00 12.00 640 32.00 12.00 680 32.00 12.00 720 32.00 12.00 760 32.00 12.00 800 Skimmys Fixed Unit SP Unit VC Costs $ 19.00 $ 8.32 $ 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9.200 19.00 8.32 9.200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9.200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9.200 19.00 8.32 9.200 Instructions There are five parts to this problem. Use Excel or the visualization software of your or your instructor's choice to perform the following: In the yellow shaded column in the student work area, input formulas to calculate the total revenue and total variables costs for each product at each level of activity given in the data, and the total revenue and total variable costs for both products based on the current sales mix a. OS NO -7 a 0 1 Instructions -2 There are five parts to this problem. Use Excel or the visualization software of your or your 3 instructor's choice to perform the following: 4 a. In the yellow shaded column in the student work area, input formulas to calculate 5 the total revenue and total variables costs for each product at each level of activity 6 given in the data, and the total revenue and total variable costs for both products based on the current sales mix. 8 9 b. Create a breakeven chart (line chart) that that graphs the company's total sales revenue, fixed costs, and total variable costs. Include a descriptive chart title, 1 axes labels, and a legend 2 Calculate the multiple product breakeven point in total number of sales units and 3 sales revenue for both products and separately for each product using formulas 4 presented in your textbook. 5 d. Compare your answer to part e with the break-even point on the break-even 6 chart created in part b. What do you notice as it relates to the three lines in the 7 chart as compared to amounts you calculated in part c? 8 9 The selling prices in the data presented below reflect a decrease in selling price of O $5 for skimmys and an increase in selling price of $5 for boogies. Copy the data 51 your created in part a to the space designated in part e of the student work area. 52 Your table should automatically populate with new values if you used formulas 3 in part a. Create another break-even chart using the new data. What happened to 4 the break-even point? Given that the change in the selling prices of the two 15 products offset each other, why did the break-even point change? Explain. 66 7 - W NO 000 C. e. Jouw Units - 20 bb 67 68 169 70 71 22 73 74 25 26 27 8 19 10 51 2 3 4 5 6 7 8 9 0 1 2 3 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 Boogies Unit SP Unit VC Units $ 37.00 $ 12.00 37.00 12.00 40 37.00 12.00 80 37.00 12.00 120 37.00 12.00 160 37.00 12.00 200 37.00 12.00 240 37.00 12.00 280 37.00 12.00 320 37.00 12.00 360 37.00 12.00 400 37.00 12.00 440 37.00 12.00 480 37.00 12.00 520 37.00 12.00 560 37.00 12.00 600 37.00 12.00 640 37.00 12.00 680 37.00 12.00 720 37.00 12.00 760 37.00 12.00 800 Skimmys Fixed Unit SP Unit vc Costs $ 14.00 $ 8.32 $ 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 Student Work Area Table for perta Table to calculate total revenue and total costs for each produd md for both products Boogies Total Total Pixed Reve VC Reve va Reverse Total Costs Costs S9,200 9.200 9,200 9.200 9.200 9.200 9.200 9,200 9.200 9,200 9,200 9.200 9.200 9.200 9.200 9,200 9.200 9.200 9.200 9.200 9,200 c. Calculation of break-even points Boogies Total Break-even point in sales is Break-even point in sales revenue d. Response to part d ALLA WE C. we ME E BE POH Te NE - 3.13 TO IL - C ME UR - Problem HydroHappy management wants to examine the profitability of its small retail shop near the beach in St. Thomas, Virgin Islands. The shop rents and sells two unique products, boogie boards and skim boards, referred to by the locals as a "Boogie" and a "Skimmy." Even though the rental operations are profitable, the retail operations may not be covering the related costs. On average, the company sells two Skimmy board for every Boogie. Forecasted data is presented here for incremental levels of volume, the unit selling price (SP), unit variable cost (VC), and total fixed costs for the retail operations. Units 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 Boogies Unit Si Unit VC Units $ 32.00 $ 12.00 32.00 12.00 40 32.00 12.00 80 32.00 12.00 120 32.00 12.00 160 32.00 12.00 200 32.00 12.00 240 32.00 12.00 280 32.00 12.00 320 32.00 12.00 360 32.00 12.00 400 32.00 12.00 440 32.00 12.00 480 32.00 12.00 520 32.00 12.00 560 32.00 12.00 600 32.00 12.00 640 32.00 12.00 680 32.00 12.00 720 32.00 12.00 760 32.00 12.00 800 Skimmys Fixed Unit SP Unit VC Costs $ 19.00 $ 8.32 $ 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9.200 19.00 8.32 9.200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9.200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9,200 19.00 8.32 9.200 19.00 8.32 9.200 Instructions There are five parts to this problem. Use Excel or the visualization software of your or your instructor's choice to perform the following: In the yellow shaded column in the student work area, input formulas to calculate the total revenue and total variables costs for each product at each level of activity given in the data, and the total revenue and total variable costs for both products based on the current sales mix a. OS NO -7 a 0 1 Instructions -2 There are five parts to this problem. Use Excel or the visualization software of your or your 3 instructor's choice to perform the following: 4 a. In the yellow shaded column in the student work area, input formulas to calculate 5 the total revenue and total variables costs for each product at each level of activity 6 given in the data, and the total revenue and total variable costs for both products based on the current sales mix. 8 9 b. Create a breakeven chart (line chart) that that graphs the company's total sales revenue, fixed costs, and total variable costs. Include a descriptive chart title, 1 axes labels, and a legend 2 Calculate the multiple product breakeven point in total number of sales units and 3 sales revenue for both products and separately for each product using formulas 4 presented in your textbook. 5 d. Compare your answer to part e with the break-even point on the break-even 6 chart created in part b. What do you notice as it relates to the three lines in the 7 chart as compared to amounts you calculated in part c? 8 9 The selling prices in the data presented below reflect a decrease in selling price of O $5 for skimmys and an increase in selling price of $5 for boogies. Copy the data 51 your created in part a to the space designated in part e of the student work area. 52 Your table should automatically populate with new values if you used formulas 3 in part a. Create another break-even chart using the new data. What happened to 4 the break-even point? Given that the change in the selling prices of the two 15 products offset each other, why did the break-even point change? Explain. 66 7 - W NO 000 C. e. Jouw Units - 20 bb 67 68 169 70 71 22 73 74 25 26 27 8 19 10 51 2 3 4 5 6 7 8 9 0 1 2 3 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 Boogies Unit SP Unit VC Units $ 37.00 $ 12.00 37.00 12.00 40 37.00 12.00 80 37.00 12.00 120 37.00 12.00 160 37.00 12.00 200 37.00 12.00 240 37.00 12.00 280 37.00 12.00 320 37.00 12.00 360 37.00 12.00 400 37.00 12.00 440 37.00 12.00 480 37.00 12.00 520 37.00 12.00 560 37.00 12.00 600 37.00 12.00 640 37.00 12.00 680 37.00 12.00 720 37.00 12.00 760 37.00 12.00 800 Skimmys Fixed Unit SP Unit vc Costs $ 14.00 $ 8.32 $ 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 14.00 8.32 9,200 Student Work Area Table for perta Table to calculate total revenue and total costs for each produd md for both products Boogies Total Total Pixed Reve VC Reve va Reverse Total Costs Costs S9,200 9.200 9,200 9.200 9.200 9.200 9.200 9,200 9.200 9,200 9,200 9.200 9.200 9.200 9.200 9,200 9.200 9.200 9.200 9.200 9,200 c. Calculation of break-even points Boogies Total Break-even point in sales is Break-even point in sales revenue d. Response to part d ALLA WE C. we ME E BE POH Te NE - 3.13 TO IL - C ME UR

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_2

Step: 3

blur-text-image_3

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

Corporate Accounting Vol 1

Authors: Dr S. Kr. Paul, Prof. Chandrani Paul

1st Edition

164725146X, 9781647251468

More Books

Students also viewed these Accounting questions

Question

Recognize and describe the steps in the recruiting process

Answered: 1 week ago

Question

Appreciate the contribution made by a positions incumbent

Answered: 1 week ago

Question

Know how to conduct a position analysis

Answered: 1 week ago