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More questions=More rates 13. Teresa's Kitchen is a nonprofit organization that provides free meals to the community. Its fixed costs are $72,000 per year. The
More questions=More rates 13. Teresa's Kitchen is a nonprofit organization that provides free meals to the community. Its fixed costs are $72,000 per year. The current average variable cost of providing each meal (unit) is $3. Teresa is funded by the Red Cross and community donations in the amount of $148,000 for 2020. a) Calculate the maximum number of meals (units) that Teresa can provide in 2020 and still break even (round to the nearest unit (meal)). b) If the average variable cost per meal increases to $4.50, calculate the maximum number of meals (units) that Teresa can provide in 2020 and still break even (round to the nearest unit (meal)). 14. All of Eugene, Inc.'s operating costs can be classified as mixed costs. It sells one product at a price of $15 per unit. At Eugene's high level of activity in March, production was 17,000 units and total costs were $162,000. In May, a month of low activity, production was 6,000 units and total costs were $ 105,000. a) Using the high-low method, calculate Eugene's variable cost per unit and total fixed costs (round to nearest $0.00). b) Calculate the units that Eugene needs to produce and sell to achieve a target profit of $20,000 (round to the nearest unit). 15. Hendrix Company manufactures two models of its electric guitar, the Strummer and the Jammer. The company makes an estimated 6,300 units of the Strummer model and 1,800 units of the Jammer model each year. The company inspects two Strummers for every 100 produced and inspects two Jammers for every 10 produced. The company expects to incur $34,020 of total inspecting factory overhead cost this year. Calculate the total inspecting factory overhead cost that should be assigned to each guitar model (Strummer and Jammer) this year. 16. Bravo Delta Co. uses 5 machine hours and 9 direct labor hours to produce one unit of Product B. It uses 6 machine hours and 7 direct labor hours to produce one unit of Product D. Bravo Delta's Fabrication and Assembly Departments have estimated annual factory overhead costs of $224,000 and $424,000, respectively. The Fabrication Dept. expects 16,000 machine hours this year. The Assembly Dept. expects 10,000 direct labor hours this year. Calculate the factory overhead cost that will be charged to each unit of the two products using multiple production dept. factory overhead rates
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