Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ivanhoe Hot Dog Stand has had the following average results for the past several months: Its selling price per hot dog is $3. Total monthly
Ivanhoe Hot Dog Stand has had the following average results for the past several months: Its selling price per hot dog is $3. Total monthly sales revenues have been $6200, direct costs of labor and food ingredients have been $2610 per month, variable indirect costs have been $490 per month, and fixed costs have been $1650 per month. If Ivanhoe experiences a $165 per month increase in insurance costs, what will this increase do to its break-even point? 1 Break-even point will increase by 165 hot dogs per month. Break-even point will increase by 225 hot dogs per month. Break-even point will increase by 220 hot dogs per month. O Break-even point will increase by 110 hot dogs per month. Flounder Bakery Shop has the following information for the current fiscal year: 3 Novak's Hunting and Fishing has the following information for the current fiscal year: COGS - Variable $246000 COGS - Fixed 73000 SG&A - Variable 41400 SG&A - Fixed 23000 Contribution Margin 251000 Total Sales $394000 COGS - Variable 140000 COGS - Fixed 50000 SG&A - Variable 22600 SG&A - Fixed 13000 The contribution margin for Flounder Bakery Shop is $181400 $231400 $140000 $358400 4 The Sales for Novak's Hunting and Fishing are $315400 $538400 $570000 O $611400 Mark has opted to sell his famous funnel cakes at the local farmer's market instead of opening his own store. After his first month, he summarized the following financial data: unit variable cost per funnel cake was $2 and the monthly rental fee for the space at the market which includes electricity is $740. Mark initially decided to set the selling price per unit for each funnel cake at $4. If the sales for the first month were 540 funnel cakes, what was Mark's margin of safety in units? 710 units 170 units 370 units 540 units
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