Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mo's Delicious Burgers Inc. sells food to university cafeterias for $47 a box. The fixed costs of this operation are $275,100, while the variable cost

Mo's Delicious Burgers Inc. sells food to university cafeterias for $47 a box. The fixed costs of this operation are $275,100, while the variable cost per box is $26.

a.What is the break-even point in boxes?(Do not round intermediate calculations.)

Break-even pointboxes

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.)

BoxesProfit/LossAmount11,000

(Click to select)

Loss

Profit

$22,000

(Click to select)

Profit

Loss

$

c-1.What is the DOL at 15,400 boxes and 26,000 boxes?(Round the final answers to 2 decimal places.)

Boxes:

15,400

26,000

DOL:

X

X

d.If the firm has an annual interest payment of $11,600, calculate the DFL at both 15,400 and 26,000 boxes.(Round the final answers to 2 decimal places.)

Boxes:

15,400

26,000

DFL:

X

X

e.What is the DCL at both sales levels?(Round the final answers to 2 decimal places.)

Boxes:

15,400

26,000

DCL

X

X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

The Company Valuation Playbook Invest With Confidence

Authors: Charles Sunnucks

1st Edition

1838470816, 978-1838470814

Students also viewed these Finance questions

Question

Describe five properties of a normal distribution. L01

Answered: 1 week ago