Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part 3 Analytics Assignment: Managerial Decision Making The following information applies to the questions displayed below.] These questions relate to the Integrated Analytics Case: Bene
Part 3 Analytics Assignment: Managerial Decision Making The following information applies to the questions displayed below.] These questions relate to the Integrated Analytics Case: Bene Petit. Select the appropriate eBook link to open the Case Overview, Case Background, and Part 3: Managerial Decision Making. The following table summarizes the operating results for Bene Petit's first year of operations: Additional information about selling prices, variable costs, and fixed costs is summarized below: - The average sales price for customer meals is $5 per serving. - The average direct materials (ingredients) cost of customer meals is $1 per serving. - Direct labor costs average $0.75 per customer meal. - Variable manufacturing overhead costs are applied at a rate equal to 60% of direct labor. - The delivery expense for customer meals is $2 per customer order. - The incremental cost of producing the donated meals is $1.25 per meal. - The delivery expense for donated meals is \$125 per delivery to community partners. - The following fixed costs are allocated to customer meals based on total sales revenue: - Fixed manufacturing overhead costs are $75,000 per year. - Fixed selling expenses are $29,000 per year. - Fixed administrative expenses are $40,000 per year. Part 3 Analytics Assignment D: Cost-Volume Profit Analytics 4. Perform a "what if" analysis to see how operating results will change if sales increase by 12% during the second year of operations. a. What is the new net operating income? b. What is the new degree of operating leverage? c. If sales increased by 10% in the third year, what percentage growth in profit can the company expect? d. What is the predicted operating profit in year 3
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started