Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Take me to the text Kayla Tyler sells gifts certificates for $67 each. She purchases each gift certificate for $23 and spends $4,200 for fixed
Take me to the text Kayla Tyler sells gifts certificates for $67 each. She purchases each gift certificate for $23 and spends $4,200 for fixed costs. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. a) Calculate operating income if Kayla sells 420 gift certificates Operating Profit: $ b) Calculate the revenues needed to obtain an operating income of $4,700. Required Revenue: $ Check Take me to the text Griffin has an exclusive deal with Elite Spa and Casino to sell handbags. The average selling price is $470 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $250 per bag. Griffin's fixed costs equal $1,612,000 per year. Do not enter dollar signs or commas in the input boxes. Round all answers up to the nearest whole unit. Calculate the number of units needed to: Break-even: 7327 Earn $294,000 operating profit: 8664 Earn operating profit equal to 27% of total sales: Check Take me to the text Hermione Corporation forecasts that next year it can sell 36,000 units of its family-sized ready-to-eat meals for $1,080,000. The expected contribution margin ratio is 55%. Fixed costs are estimated to be $414,000. Do not enter dollar signs or commas in the input boxes. a) What is the selling price per unit? Round your answer to 2 decimal places. Selling Price: $ 30 b) Calculate the contribution margin if 28,000 units are produced and sold. Round your answer to the nearest whole number Contribution Margin: $ c) Calculate the contribution margin per unit. Round your answer to 2 decimal places. CM per unit: $ d) If the company decides to sell its products in the open market, determine the amount of units required to break-even. Round up to the nearest whole unit. Break-Even Units: e) Determine the operating profit if 37,000 units are produced and sold Round your answer to the nearest whole number, Operating Income: $ $94,000 f) Determine the amount of revenue that needs to be generated to yield an operating profit Round your answer to the nearest whole number. Revenue: $ Check
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started