[The following information applies to the questions displayed below.]

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

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

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

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

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

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

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline & SingleServing & DualServing & Family Size & Total & Input Values: & Single Serving & DualServing & FamilySize & Total \\ \hline \multirow[t]{2}{*}{ 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 \\ \hline & & & & & Sales mix ( % of customer meals) & 15% & 25% & 60% & 100% \\ \hline Less: Variable costs: & & & & & Number of Servings per Meal & 1 & 2 & 4 & \\ \hline Customer Meals: & & & & & Number of Servings & 3,000 & 10,000 & 48,000 & 61,000 \\ \hline 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 \\ \hline 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 \\ \hline Variable Manufacturing Overhead ( 60% of Direct) & 1,350 & 2,250 & 5,400 & 9,000 & Number of Donated Deliveries & 6 & 10 & 24 & 40 \\ \hline Variable Manufacturing Cost ($1.25 per donated & 3,750 & 6,250 & 15,000 & 25,000 & & & & & \\ \hline Customer Delivery Expenses ( $2 per customer ord & 1,500 & 2,500 & 6,000 & 10,000 & Price Per Serving & 5.00p & per custo & mer servir & \\ \hline Donation Delivery Expense ( $125 per delivery) & 750 & 1,250 & 3,000 & 5,000 & Variable Costs: & & & & \\ \hline \multirow[t]{2}{*}{ Total Variable Costs } & $12,600 & $26,000 & $86,400 & $125,000 & Direct Materials ( $1 per serving) & 1.00p & \multicolumn{3}{|c|}{ per customer serving } \\ \hline & & & & & Direct Labor ( $0.75 per customer meal) & 0.75p & \multicolumn{3}{|c|}{ per customer meal } \\ \hline Total Contribution Margin & 2,400 & $24,000 & $153,600 & $180,000 & Variable Manufacturing Overhead 60%, & 60% & \multicolumn{3}{|c|}{ of direct labor cost } \\ \hline \multicolumn{2}{|l|}{ Less: Fixed Costs Allocated Based on Sales Revenue } & & & & Variable cost of donated meals & 1.25p & \multicolumn{3}{|c|}{ per donated meal } \\ \hline Fixed Manufacturing Expenses & 3,689 & $12,295 & $59,016 & $75,000 & Variable delivery expenses (customer meal & 2.00p & \multicolumn{3}{|c|}{ per customer order } \\ \hline Fixed Selling Expenses & 1,426 & 4,754 & 22,820 & 29,000 & Variable delivery expenses (donated meal: & 125.00p & \multicolumn{2}{|c|}{ per delivery } & \\ \hline Fixed Administrative Expenses & 1,967 & 6,557 & 31,475 & 40,000 & & & & & \\ \hline Total Fixed Expenses & 7,082 & 23,607 & 113,311 & 144,000 & Fixed costs: & & & & \\ \hline \multirow[t]{2}{*}{ Net Operating Profit } & $(4,682) & 393 & $40,289 & $36,000 & Fixed manufacturing costs & 75,000 & & & \\ \hline & SingleServing & DualServing & Family Size & Overall & Fixed selling expenses & 29,000 & & & \\ \hline Average Contribution Margin Per Meal Sold & 0.80 & 4.80 & 12.80 & 9.00 & Fixed administrative expenses & 40,000 & & & \\ \hline Average Contribution Margin Ratio (\% of Revenue) & & & & 59.02% & Total Fixed costs & 144,000 & & & \\ \hline \end{tabular}