Preferably want this done in excel, word is fine too though if not. Let me know if you have any questions

Accounting 2 Handouts Assignment 9.1 Handout 1. Chicago Acoustics builds innovative loudspeakers for music and home theater systems. Consider the following costs: Requirement Identify the costs as variable or fixed. Indicate V for variable costs and F for fixed costs. 2. Sally's DayCare has been in operation for several years. Consider the following costs: Requirement Identify the costs as variable or fixed. Indicate V for variable costs and F for fixed costs. 3. SupposeWorldwide-Link offers an international calling plan that charges $10.00 per month plus $0.30 per minute for calls outside the United States. Requirements Accounting 2 Assignment Handout 2011 Pearson Education Page 1 of1 6 4/25/2016 Accounting 2 Handouts R1. Under this plan, what is your monthly international long-distance cost if you call Europe for a. 20 minutes? b. 50 minutes? c. 95 minutes? R2. Draw a graph illustrating your total cost under this plan. Label the axes, and show your costs at 20, 50, and 95 minutes. 4. Mel owns a machine shop. In reviewing his utility bill for the last 12 months he found that his highest bill of $2,400 occurred in August when his machines worked 1,000 machine hours. His lowest utility bill of $2,200 occurred in December when his machines worked 500 machine hours. Requirement Calculate (a) the variable rate per machine hour and (b) Mel's total fixed utility cost. 5. Storytime Park competes with DaisyWorld by providing a variety of rides. Storytime sells tickets at $70 per person as a one-day entrance fee. Variable costs are $15 per person, and fixed costs are $371,250 per month. Requirement Compute the number of tickets Storytime must sell to break even. Perform a numerical proof to show that your answer is correct. 6. Refer to exercise 5. Requirements R1. Compute Storytime Park's contribution margin ratio. Carry your computation to five decimal places. R2. Use the contribution margin ratio CVP formula to determine the sales revenue Storytime Park needs to break even. 7. Consider the following facts: Accounting 2 Assignment Handout 2011 Pearson Education Page 2 of2 6 4/25/2016 Accounting 2 Handouts Requirement Compute the missing information. Accounting 2 Assignment Handout 2011 Pearson Education Page 3 of3 6 4/25/2016 Accounting 2 Handouts 8. Refer to exercise 5. Requirements R1. Suppose Storytime Park cuts its ticket price from $70 to $60 to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. Carry your computations to five decimal places. R2. Ignore the information in requirement 1. Instead, assume that Storytime Park reduces the variable cost from $15 to $10 per ticket. Compute the new breakeven point in tickets and in dollars. Carry your computations to five decimal places. 9. Refer to exercise 5. Suppose Storytime Park reduces fixed costs from $371,250 per month to $343,750 per month. Requirement Compute the new breakeven point in tickets and in sales dollars. 10. Refer to exercise 5. Requirement 1. If Storytime Park expects to sell 6,900 tickets, compute the margin of safety in tickets and in sales dollars. 11. SoakNSun Swim Park sells individual and family tickets, which include a meal, 3 beverages, and unlimited use of the swimming pools. SoakNSun has the following ticket prices and variable costs for 2010: SoakNSun expects to sell 1 individual ticket for every 3 family tickets. Requirement Compute the weighted-average contribution margin per ticket. 12. Refer to exercise 11. For 2011, SoakNSun expects a sales mix of 2 individual tickets for every 3 family tickets. In this mix, the weighted-average contribution margin per ticket is $7. SoakNSun's total fixed costs are $21,000. Requirements R1. Calculate the total number of tickets SoakNSun must sell to break even. R2. Calculate the number of individual tickets and the number of family tickets the company must sell to break even. Accounting 2 Assignment Handout 2011 Pearson Education Page 4 of4 6 4/25/2016 Accounting 2 Handouts Accounting 2 Assignment Handout 2011 Pearson Education Page 5 of5 6 4/25/2016 Accounting 2 Handouts 13. Hang Ten, Co., produces sports socks. The company has fixed costs of $90,000 and variable costs of $0.90 per package. Each package sells for $1.80. Requirements R1. Compute the contribution margin per package and the contribution margin ratio. R2. Find the breakeven point in units and in dollars, using the contribution margin approach. 14. Gary's Steel Parts produces parts for the automobile industry. The company has monthly fixed costs of $630,000 and a contribution margin of 95% of revenues. Requirements R1. Compute Gary's monthly breakeven sales in dollars. Use the contribution margin ratio approach. R2. Use contribution margin income statements to compute Gary's monthly operating income or operating loss if revenues are $510,000 and if they are $1,000,000. R3. Do the results in requirement 2 make sense given the breakeven sales you computed in R1? Explain. Accounting 2 Assignment Handout 2011 Pearson Education Page 6 of6 6 4/25/2016 Accounting 2 Handouts Assignment 9.2 Handout 1. British Productions performs London shows. The average show sells 1,200 tickets at $50 per ticket. There are 120 shows a year. The average show has a cast of 70, each earning an average of $300 per show. The cast is paid after each show. The other variable cost is a program-printing cost of $7 per guest. Annual fixed costs total $459,000. Requirements R1. Compute revenue and variable costs for each show. R2. Use the income statement equation approach to compute the number of shows British Productions must perform each year to break even. R3. Use the contribution margin approach to compute the number of shows needed each year to earn a profit of $3,825,000. Is this profit goal realistic? Give your reasoning. R4. Prepare British Productions' contribution margin income statement for 120 shows for 2011. Report only two categories of costs: variable and fixed. 2. Big Time Investor Group is opening an office in Dallas. Fixed monthly costs are office rent ($8,200), depreciation on office furniture ($1,500), utilities ($2,300), special telephone lines ($1,300), a connection with an online brokerage service ($2,900), and the salary of a financial planner ($11,800). Variable costs include payments to the financial planner (9% of revenue), advertising (12% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (5% of revenue). Requirements R1. Use the contribution margin ratio CVP formula to compute Big Time's breakeven revenue in dollars. If the average trade leads to $800 in revenue for Big Time, how many trades must be made to break even? R2. Use the income statement equation approach to compute the dollar revenues needed to earn a target monthly operating income of $11,200. R3. Graph Big Time's CVP relationships. Assume that an average trade leads to $800 in revenue for Big Time. Show the breakeven point, the sales revenue line, the fixed cost line, the total cost line, the operating loss area, the operating income area, and the sales in units (trades) and dollars when monthly operating income of $11,200 is earned. The graph should range from 0 to 80 units. R4. Suppose that the average revenue Big Time earns increases to $900 per trade. Compute the new breakeven point in trades. How does this affect the breakeven point? Accounting 2 Assignment Handout 2011 Pearson Education Page 1 of1 2 4/25/2016 Accounting 2 Handouts Decision Case Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand. Linda, a professional chef, was impressed with the cooking methods and the spices used in the Thai food. Bartlesville does not have a Thai restaurant, and the Homs are contemplating opening one. Linda would supervise the cooking, and Steve would leave his current job to be the maitre d'. The restaurant would serve dinner TuesdaySaturday. Steve has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be moved together for a large party. Linda is planning two seatings per evening, and the restaurant will be open 50 weeks per year. The Homs have drawn up the following estimates: Requirements R1. Compute the annual breakeven number of meals and sales revenue for the restaurant. R2. Also compute the number of meals and the amount of sales revenue needed to earn operating income of $75,600 for the year. R3. How many meals must the Homs serve each night to earn their target income of $75,600? R4. Should the couple open the restaurant? Accounting 2 Assignment Handout 2011 Pearson Education Page 2 of2 2 4/25/2016