More info Raising crickets requires a two-step process: incubation and brooding. In the first process, incubation, employees place cricket eggs on mounds of peat moss to hatch. In the second process, employees move the newly hatched crickets into large boxes filled with cardboard dividers. Depending on the desired size, the crickets spend approximately two weeks in brooding before being shipped to pet stores. In the brooding process, Clarence's crickets consume about 16 tons of food and produce 12 tons of manure. Cory has invested $500,000 in the cricket farm, and he had hoped to earn a 57.6% annual rate of return, which works out to a 4.8% monthly return on his investment. After looking at the farm's bank balance, Cory fears he is not achieving this return. To get more accurate information on the farm's performance, Cory bought new accounting software that provides weighted-average process cost information. After Cory input the data, the software provided the following reports. However, Cory needs help interpreting these reports. Cory does know that a unit of production is a box of 1,000 crickets. For example, in June's report, the 7,000 physical units of beginning work in process inventory are 7,000 boxes (each one of those boxes contains 1,000 immature crickets). The finished goods inventory is zero because the crickets ship out as soon as they reach the required size. Monthly operating expenses total $6,600 (in addition to the costs that follow). Clarence Cory operates Clarence's Cricket Farm in Brunswick, Georgia. Clarence's raises about 18 million crickets a month. Most are sold to pet stores at $8.65 for a box of 1,000 crickets. Pet stores sell the crickets for $0.05 to $0.10 each as live feed for reptiles. (Click the icon to view the production cost repo. (Click the icon to view the production cost repol Requirement 1. What is the cost per box of crickets sold? (Hint: This is the cost of the boxes completed and shipped out of brooding. First, identify the labels to compute the average cost per box transferred out, then compute the average cost per box shipped out of b. (Enter your answer to the nearest cent.) Requirement 2. What is the gross profit per box? First, identify the labels to compute the gross profit per box, then compute the gross profit per box. (Enter all dollar amounts to the near cent.) Requirement 3. How much operating income did Clarence's Cricket Farm make in June? First, identify the labels to compute the operating income, then compute the operating income for June. Requirement 4. What is the return on Cory's investment of $500,000 for the month of June? (Compute this as June's operating income di by Cory's investment, expressed as a percentage.) (Round the retum on investment to the nearest hundredth of a percent, XXX%.) The return on Cory's investment of $500,000 for the month of June is Requirement 4. What is the retum on Cory's investment of $500,000 for the month of June? (Compute this as June's operating income divi: by Cory's investment, expressed as a percentage.) (Round the return on investment to the nearest hundredth of a percent, XX%.) The retum on Cory's investment of $500,000 for the Yonth of June is Requirement 5. What monthly operating income would provide a 4.8% monthly rate of return? What price per box would Clarance's Cricket Farm have had to charge in June to achieve this target monthly rate of return? First, identify the labels to compute the desired monthly operating income, then compute the amount. Identify the labels to compute the selling price per box needed to achieve a 4.8% monthly rate of retum, then compute the amount. Data table
