Please answer question 6. Thank you in advance !
( Required information [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: Managerlal Decision Making. The following tabie 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 CVP Analysis/starting data) xisx 6. Assume that Taylor is considering raising the price per serving by 20% but expects a corresponding drop in demand. How much would profit increase or decrease compared to the starting profit of $36,000 ? Profit ( Required information [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: Managerlal Decision Making. The following tabie 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 CVP Analysis/starting data) xisx 6. Assume that Taylor is considering raising the price per serving by 20% but expects a corresponding drop in demand. How much would profit increase or decrease compared to the starting profit of $36,000 ? Profit
