Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Price and cost data are in the table Hunter Cellars produces and sells bottles of wine. below: HA2011 Final Assessment T2 2021 $ 37.50 Selling

image text in transcribed

Price and cost data are in the table Hunter Cellars produces and sells bottles of wine. below: HA2011 Final Assessment T2 2021 $ 37.50 Selling Price per bottle Variable Costs per bottle $12.30 $6.00 Direct Materiakt Direct Labour Manufacturing Overhead Selling Costs Total VC per bottle $9.00 $2.40 $29.70 Annual Fixed Costs Manufacturing Overhead Selling and Administrative Total FC 140,000 units $432,000.00 $621,000.00 $1,053,000.00 $5,250,000.00 Forecast annual sales Ignoring income taxes, calculate the following: 1. What is Hunter Cellars' break-even point in units? (1 mark) 2. What is the company's break-even point in sales dollars? (1 marks) 3. If Hunter Cellars has a target profit of $570,000.00 how many bottles of wine would it have to sell? (2 marks) 4. Calculate the company's safety margin and interpret what that number means

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

Accounting Managing Business Information Preliminary Edition Volume I

Authors: Thomas L. Albright , Robert W. Ingram

1st Edition

0324061625, 978-0324061628

More Books

Students also viewed these Accounting questions

Question

Explain how to reward individual and team performance.

Answered: 1 week ago