Please help with these four questions. Thank you!

2. Treat the following questions as independent scenarios. Use the starting spreadsheet to complete the following break-even analysis questions.

A. How many single-, dual- and family-sized meals must be sold to break even?

B. How much is the total sales revenue at the break-even point?

C. What was Bene Petits margin of safety (in total meals sold) for the first year of operations?

D. How many meals will Bene Petit donate to the homeless at the break-even point?

Required information

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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 Petits first year of operations:

Bene Petit
First Year Operating Data:
	Single (1 serving)	Dual (2 servings)	Family (4 servings)	Total
Customer Meals Sold	3,000	5,000	12,000	20,000
Total Customer Servings	3,000	10,000	48,000	61,000
Customer Orders (Average = 4 meals per order)	750	1,250	3,000	5,000
Number of Donated Meals (1 per customer meal)	3,000	5,000	12,000	20,000
Number of Donated Deliveries (500 meals per delivery)	6	10	24	40

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).xlsx

	Single Serving	Dual Serving	Family Size	Total		Input Values:	Single Serving	Dual Serving	Family Size	Total
Total Sales Revenue ($5 per serving)	$ 15,000	$ 50,000	$ 240,000	$ 305,000		Number of Customer Meals	3,000	5,000	12,000	20,000
						Sales mix (% of customer meals)	15%	25%	60%	100%
Less: Variable costs:						Number of Servings per Meal	1	2	4
Customer Meals:						Number of Servings	3,000	10,000	48,000	61,000
Direct Materials ($1 per customer serving)	$ 3,000	$ 10,000	$ 48,000	$ 61,000		Number of Customer Orders	750	1,250	3,000	5,000
Direct Labor ($0.75 per customer meal)	2,250	3,750	9,000	15,000		Number of Donated Meals	3,000	5,000	12,000	20,000
Variable Manufacturing Overhead (60% of Direct labor)	1,350	2,250	5,400	9,000		Number of Donated Deliveries	6	10	24	40
Variable Manufacturing Cost ($1.25 per donated meal)	3,750	6,250	15,000	25,000
Customer Delivery Expenses ($2 per customer order)	1,500	2,500	6,000	10,000		Price Per Serving	$ 5.00	per customer serving
Donation Delivery Expense ($125 per delivery )	750	1,250	3,000	5,000		Variable Costs:
Total Variable Costs	$ 12,600	$ 26,000	$ 86,400	$ 125,000		Direct Materials ($1 per serving)	$ 1.00	per customer serving
						Direct Labor ($0.75 per customer meal)	$ 0.75	per customer meal
Total Contribution Margin	$ 2,400	$ 24,000	$ 153,600	$ 180,000		Variable Manufacturing Overhead 60% of DL	60%	of direct labor cost
Less: Fixed Costs Allocated Based on Sales Revenue						Variable cost of donated meals	$ 1.25	per donated meal
Fixed Manufacturing Expenses	$ 3,689	$ 12,295	$ 59,016	$ 75,000		Variable delivery expenses (customer meals)	$ 2.00	per customer order
Fixed Selling Expenses	1,426	4,754	22,820	29,000		Variable delivery expenses (donated meals)	$ 125.00	per delivery
Fixed Administrative Expenses	1,967	6,557	31,475	40,000
Total Fixed Expenses	7,082	23,607	113,311	144,000		Fixed costs:
Net Operating Profit	$ (4,682)	$ 393	$ 40,289	$ 36,000		Fixed manufacturing costs	$ 75,000
	Single Serving	Dual Serving	Family Size	Overall		Fixed selling expenses	$ 29,000
Average Contribution Margin Per Meal Sold	$ 0.80	$ 4.80	$ 12.80	$ 9.00		Fixed administrative expenses	$ 40,000
Average Contribution Margin Ratio (% of Revenue)				59.02%		Total Fixed costs	$ 144,000
	Single Serving	Dual Serving	Family Size	Total
Break-even point (customer meals sold)
Break-even point (total sales revenue)
Margin of Safety (Customer Meals)
Margin of Safety (Sales $)
Degree of Operating Leverage