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only need parts 5-7 please list answers by question numbers Giannis Antetokoumpo opened a frozen greek yogurt shop, Freakin' Greek Yogurt, in downtown Milwaukee to
only need parts 5-7 please list answers by question numbers
Giannis Antetokoumpo opened a frozen greek yogurt shop, "Freakin' Greek Yogurt", in downtown Milwaukee to further his brand in the Milwaukee market. Unfortunately, in the first year of operations he has not been able to make a profit. The most recent income statement based on a current volume of 36,500 servings is as follows. Complete Giannis' current contribution margin income statement for his shop and expand it to include the sales, variable expenses, and contribution margin information on a per-unit and percent of sales basis. Round your per-unit calculations to the nearest cent and percent of sales calculations to the nearest whole percent, as needed. 38.500 Per-Unit Around $219.000 $4.19 of Sales 100% Sales Level in Units Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating thome 86,300 2. Without re-doing the entire income statement, how much would the company's net operating income increase if they sold 1,000 more units? How did you solve for this quickly? Using the Contribution Margin information as rounded above, calculate the company's break-even point in dollar sales. Show your work in the calculation box. Round the break-even point in dollars to the nearest cent. Calculation An Break-even point in sales dollars 4. If Giannis wanted to earn a target profit of $50,000, what would yogurt sales need to be in units (how many yogurt servings would have to be sold)? Round units up to the next full unit. Calculation Answer Target sales in units s. If Giannis' company reaches the targeted sales level in #5 above, what is the company's Margin of Safety in sales dollars. Round dollars to nearest cent. Calculation Answer Margin of safety in dollars Go back to the data assumed in #1. Giannis is worried that he overpriced the market. He is considering dropping the sales price by $0.20 to $5.80 per yogurt. If he enacts an advertising campaign costing $18,000 to publicize this price drop, he believes that he can double the number of units sold. Prepare a revised contribution margin income statement showing the impacts of these changes: Calculation Answer Sales level in units Sales Variable expenses Contribution margin Fred expenses Net operating income Should Giannis run the advertising campaign? Yes/No (circle answer) Explain: 7. Calculate Giannis' new Degree of Operating Leverage if all of the above (#6) is enacted (round to one decimal place): Calculation Answer Degree of Operating Leverage Giannis Antetokoumpo opened a frozen greek yogurt shop, "Freakin' Greek Yogurt", in downtown Milwaukee to further his brand in the Milwaukee market. Unfortunately, in the first year of operations he has not been able to make a profit. The most recent income statement based on a current volume of 36,500 servings is as follows. Complete Giannis' current contribution margin income statement for his shop and expand it to include the sales, variable expenses, and contribution margin information on a per-unit and percent of sales basis. Round your per-unit calculations to the nearest cent and percent of sales calculations to the nearest whole percent, as needed. 38.500 Per-Unit Around $219.000 $4.19 of Sales 100% Sales Level in Units Sales Variable Expenses Contribution Margin Fixed Expenses Net Operating thome 86,300 2. Without re-doing the entire income statement, how much would the company's net operating income increase if they sold 1,000 more units? How did you solve for this quickly? Using the Contribution Margin information as rounded above, calculate the company's break-even point in dollar sales. Show your work in the calculation box. Round the break-even point in dollars to the nearest cent. Calculation An Break-even point in sales dollars 4. If Giannis wanted to earn a target profit of $50,000, what would yogurt sales need to be in units (how many yogurt servings would have to be sold)? Round units up to the next full unit. Calculation Answer Target sales in units s. If Giannis' company reaches the targeted sales level in #5 above, what is the company's Margin of Safety in sales dollars. Round dollars to nearest cent. Calculation Answer Margin of safety in dollars Go back to the data assumed in #1. Giannis is worried that he overpriced the market. He is considering dropping the sales price by $0.20 to $5.80 per yogurt. If he enacts an advertising campaign costing $18,000 to publicize this price drop, he believes that he can double the number of units sold. Prepare a revised contribution margin income statement showing the impacts of these changes: Calculation Answer Sales level in units Sales Variable expenses Contribution margin Fred expenses Net operating income Should Giannis run the advertising campaign? Yes/No (circle answer) Explain: 7. Calculate Giannis' new Degree of Operating Leverage if all of the above (#6) is enacted (round to one decimal place): Calculation Answer Degree of Operating Leverage Step by Step Solution
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