Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please Help The Local Donut is a gourmet donut shop with locations throughout California, Arizona and Nevada. They sell a variety of gourmet donuts and

image text in transcribedimage text in transcribedPlease Help

The Local Donut is a gourmet donut shop with locations throughout California, Arizona and Nevada. They sell a variety of gourmet donuts and their four main flavours are Vanilla Dip, Chocolate Dip, Boston Cream and a monthly seasonal flavour. Information related to the sales that are expected for the month of June is below: Vanilla Dip Chocolate Dip Boston Cream Seasonal 3,000 3,500 3,125 4,000 Expected sales in units) Sales price per unit $5.00 $5.50 $6.50 $7.00 Variable cost per unit $2.00 $2.15 $2.75 $3.00 15000 The company has monthly fixed costs of aand a tax rate of 25%. REQUIRED: a) Compute the company's expected profit (net income after tax) for the month of June. b) Compute the company's sales mix. c) Assuming a consistent sales mix, how many units of each product type must the company sell to break even? d) Assuming a consistent sales mix, if The Local Donut wishes to earn a monthly target operating profit of $40,000, how many units of each product type must be sold

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

The Practitioners Guide To Edp Auditing

Authors: Jack Mullen

1st Edition

0136912621, 978-0136912620

More Books

Students also viewed these Accounting questions

Question

Determine the Y parameters for the network shown infigure. ww V1 V2

Answered: 1 week ago