Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribedimage text in transcribedimage text in transcribed 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. The attached excel file shows a contribution margin income statement based on these starting assumptions. You should return to this starting spreadsheet for each part of the case below. Part 3 Analytics Assignment B: Cost-Volume Profit Analytics 2. Treat the following questions as independent scenarios. Use the starting spreadsheet to complete the following break-even analysis questions. a. How many single-, dual- and family-sized meals must be sold to break even? b. How much is the total sales revenue at the break-even point? c. What was Bene Petit's margin of safety (in total meals sold) for the first year of operations? d. How many meals will Bene Petit donate to the homeless at the break-even point

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

ISO 9000 Family Of Standards With Extracts From ISO 9001 Audit Trail

Authors: David John Seear

1st Edition

1477226400, 978-1477226407

More Books

Students also viewed these Accounting questions