Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pleae list out answers with the corresponding question numbers Giannis Antetokoumpo opened a frozen greek yogurt shop, Freakin' Greek Yogurt, in downtown Milwaukee to further

Pleae list out answers with the corresponding question numbers
image text in transcribed
image text in transcribed
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. PerUnit Amount 36.500 5279.000 of Sales 100% $4.19 Sales Levotin Units Sales Variable Expenses Contribution Margin Fred Expenses Net Operating 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. Calcio Arse 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

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

Public Sector Accounting And Auditing In Europe The Challenge Of Harmonization

Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi

2015th Edition

1137461330, 978-1137461339

More Books

Students also viewed these Accounting questions