Question
Mos Delicious Burgers Inc. sells food to university cafeterias for $35 a box. The fixed costs of this operation are $178,500, while the variable cost
Mos Delicious Burgers Inc. sells food to university cafeterias for $35 a box. The fixed costs of this operation are $178,500, while the variable cost per box is $20.
a. What is the break-even point in boxes? (Do not round intermediate calculations.)
Break-even point boxes
b. Calculate the profit or loss on 11,000 boxes and 22,000 boxes. (Do not round intermediate calculations. Input all answers as positive values.)
Boxes | Profit/Loss | Amount |
11,000 | (Click to select) Loss Profit | $ |
22,000 | (Click to select) Profit Loss | $ |
c-1. What is the DOL at 15,400 boxes and 20,500 boxes? (Round the final answers to 2 decimal places.)
Boxes | DOL | |
15,400 | X | |
20,500 | X | |
c-2. Not available in Connect.
d. If the firm has an annual interest payment of $11,000, calculate the DFL at both 15,400 and 20,500 boxes. (Round the final answers to 2 decimal places.)
Boxes | DFL | |
15,400 | X | |
20,500 | X | |
e. What is the DCL at both sales levels? (Round the final answers to 2 decimal places.)
Boxes | DCL | |
15,400 | X | |
20,500 | X | |
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