Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

IV Gorro Sombrero is considering opening a position in a mall to sell caps. He wants to know how many caps he has to sell

image text in transcribedimage text in transcribedimage text in transcribed

IV Gorro Sombrero is considering opening a position in a mall to sell caps. He wants to know how many caps he has to sell to reach the breakeven point. The caps would sell for $15, variable costs of $ 10 per cap, and the annual fixed costs are $ 48.000. How many caps do you have to sell annually to reach the breakeven point. (3 points) What would be the total operational costs to achieve the breakeven point? (3 points) If Cap estimates that the least that sells that business is 925 caps per month, should he set up the business? ( points) What would be the net profit before income tax that Goro would have if he sells 925 caps a month? (3 points) Cool Inc granny glasses. Sell sunglasses. Last year the glasses were sold at $ 30 each, with variable costs goggle $ 20 and fixed operating costs of $ 24,000. How many glasses does Cool Gafitas have to sell this year to reach the breakeven point considering the aforementioned costs, given the following scenarios? All numbers remain the same as last year. (3 points) Fixed operating costs increase to $ 28,000, the other items remain the same. (3 points) The selling price is increased to $ 28,000, all costs remain the same as last year. (3 points) The variable cost per glasses increases to $ 22.50, the other items remain the same as last year. (3 points) . The projection of sales of a certain company for the next year of operations will be 15.000 units. Currently, the company has 15,000 units in inventory. As it understands that it is a lot of inventory, the company plans to reduce the final inventory of the next year of operations to 60% of the current amount. On the other hand, the company wants to project its conversion costs for next year and plan how to reduce them. Currently, these costs represent an average of $ 55 / unit to be produced, of which 40 % represent direct labor. Required: Calculate the production budget in units (5 points). Calculate the direct labor cost budget (5 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

An Introduction to the Mathematics of financial Derivatives

Authors: Salih N. Neftci

2nd Edition

978-0123846822

Students also viewed these Accounting questions