Please answer questions "a" & "b". 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: 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. - Voriable 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. Pan 3.CVP Anolysis (starting dato) xisx - Direct labor costs average $0.75 per customer meal. - Varlable manufacturing overhead costs are applied at a rate equal to 60% of direct labor. - The dellvery 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 dellvery 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. - Foced 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) xlex 3. Use the "goal seek" function in Excel to determine how many customer meals (in total and by product line) must be sold to earn $126,000 in net operating income. Hint. Use the "goal seek" function to change net operating income to $126,000 by changing only the cell that contains the total number of customer meals sold. a. How many total meals must be sold to earn $126,000 in net operating income? Total meals b. How much total sales is required to earn $126,000 in net operating income? Total sales
