Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE HELP ME SOLVE QUESTION 10! the handy doll manufacturing company has the following Information: the average doll sales price is 12$, raw materials for

PLEASE HELP ME SOLVE QUESTION 10!
the handy doll manufacturing company has the following Information: the average doll sales price is 12$, raw materials for a doll are $4, and it takes 15 minutes to assemble a doll. Production labor is paid $8 per hour. Operating expenses are as follows: salaries: 2,500 per week, insurance: $1,200 per quarter, rent: $1,500 per month, and utilities: $800 per month. How many dolls must be sold per month to break even? How many dollars in sales does this represent? What is the contribution margin for each doll sold?
image text in transcribed
6. Pan Puer bankruptcy What is the relationship among fixed costs, contribution margin, and the break-even 8. What are some factors that affect variable costs? 9. What are the basic steps that you must take to determine if you are able to make a profit? 10. The Handy Doll Manufacturing Company has the following information: The average doll sales price is $12, raw materials for a doll are $4, and it takes 15 minutes to assemble a doll. Production labor is paid $8 per hour. Operating expenses are as follows: salaries, $2,500 per week; insurance, $1,200 per quarter; rent, $1,500 per month; and utilities, $800 per month. How many dolls must be sold per month to break even? How many dollars in sales does this represent? What is the contribution margin for each doll sold? 11. For the company in question 10, if the goal is to make a profit of $5,000 per month, how many dolls must be sold? 12. What is the effect of an increase in variable costs as a percentage of sales on the contribution margin and on the break-even dollar amount? 13. Discuss the changes in bankruptcy law and their impact on a personal and business basis

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

Financial Management Theory And Practice

Authors: Prasanna Chandra

9th Edition

9339222571, 978-9339222574

More Books

Students also viewed these Finance questions

Question

Consider the following data for Magnimus Corporation.

Answered: 1 week ago

Question

You have

Answered: 1 week ago