This question require you to provide answers in same Excel and I want it in two days time.

NAME COURSE: Managerial Accounting MID-TERM Instructor: Dan Sevall Instructions: THIS MID EXAMS IS TAKE HOME Working in teams is not permitted. If you have any questions, please ask. This exam has 5sections (CLICK ON THE RESPECTIVE TAB for each section) Cost Behavior Brodsky Corp Mulitple Product Breakeven Optometry Clinic Trade-off between fixed and variable costs % 15% 15% 25% 20% 25% 100% Assume a local Subway reported the following results for April and May August September Unit Sales 2,000 2,500 Cost of Food Sold Wages and Salaries Rent Depreciation Utilities Supplies Miscellaneous Total $ $ 1,000 1,525 1,500 200 710 500 110 5,545 $ $ 1,250 1,675 1,500 200 770 625 140 6,160 change 500 250 150 60 125 30 - a. Identify each cost as being fixed, variable or mixed. b. Determine the equation for total operating costs (Fixed + Unit Variable Cost * # of sandwiches) c. Predict the total operating costs for 2750 3000 sandwiches d. Determine the average costs for 2750 3000 sandwiches b) 3,085 + 1.23q fixed cost unit variable cost projected quantity Total cost Average cost Also, Fixed cost unit variable cost projected quantity total cost average cost $3085 $1.23 2750 6,467.5 2.35 $3085 $1.23 3000 6,775 tc/# of pizza $2.26 % cange type of cost 25% 25% 10% 0% 0% 8% 25% 27% Variable cost Mixed cost fixed cost fixed cost Mixed cost Variable cost Mixed cost fixed cost unit variable cost 925 1,500 200 470 (10) 3,085 0.5 0.3 0 0 0.12 0.25 0.06 1.23 sandwiches sandwiches Brodsky Company Data for Brodsky Company is as Follows: Units Sold Revenue Costs 100,000 $ 1,000,000 Fixed Raw Material Direct labor Factory Costs Selling and Administrative Total Costs Operating Income Variable 100,000 100,000 200,000 400,000 $ 300,000 200,000 500,000 100,000 a. Based on the above information, calculate the break-even units. b. If Brodsky is subject to an effective income tax rate of 40%, calculate the number of units Brodsky would have to sell to earn an after-tax profit of $100,000. hint: operating income = Aftertax profit/ (1- tax rate) Break-even Analysis (Multiple Products) 20% Monday's Major Retail Outlet is a company that specializes in selling Printers, Monitors and Desktops. The sales mix is 2:4:4 (i.e. for every 2 Printers sold, 4 Monitors and 4 Desktops are sold). 1) Find the break-even point for each product. The company's annual fixed costs are $28M 2) Additionally, please find the target # of units to reach an operating profit of $14M. 3) Concept question: Which product do you think Monday's sales team will try to promote more and why? (answer in no more than 3 sentences) Printers Monitors Desktops Fixed cost WA Unit CM WA Break-even point b) operating profit fixed cost WA unit CM target # of units Selling Price Per Unit 500 200 800 Contribution Variable Cost Per Margin Per Unit unit sales mix 300 200 100 100 300 500 2 4 4 10 sales mix % weighted average CM*%sales mix 20.0% 40.0 40% 40.0 40% 200.0 280 weighted avaerage unit contribution margin $28,000,000 280 1,000,000 Printers Monitors Desktops sales mix % 20% 100,000 40% 100,000 40% 100,000 20,000 40,000 40,000 Printers Monitors Desktops sales mix% 20.0% 150,000 40.0% 150,000 40.0% 150,000 30,000 60,000 60,000 14,000,000 28,000,000 42,000,000 280 150,000 Optometry Clinic You are evaluating ways to expand an optometry practice and its earnings capacity. Optometrists perform eye exams, pres and contact lenses) and sell corrective lenses. One way to expand the practice is to hire an additional optometrist. The an salary, benefits and payroll taxes is $80,000. You estimate that this individual can conduct two exams per hour at an avera work 40-hour weeks for 48 weeks per year. However, because of scheduling conflicts, patient no shows, training and othe will not be able to conduct, bill and and collect 100% of her available examination time. From past experience, you know that each eye exam drives additional product sales. Each exam will lead to either an eyeg with a net profit of $90 (does NOT include the $45 exam fee) or a contact lens sale of $65 of net profit. On average, 60% 20% lead to contact lens sales, and 20% lead to no further sales. Below are additional incremental costs for the new optometrist: Annual Office Occupancy Costs $ 10,000 Leased Equipment 5,000 Office Staff 30,000 What is the minimum level of examinations the new optometrist must perform to pay for herself (break-even)? tometrists perform eye exams, prescribe corrective lenses (eyeglasses e an additional optometrist. The annual cost of the optometrist, including uct two exams per hour at an average price to the patient of $45 per exam. The new optometrist will patient no shows, training and other downtime, the new optometrist ach exam will lead to either an eyeglass sale 65 of net profit. On average, 60% of exams lead to eyeglass sales, r herself (break-even)? Dan Company Dan Company owns and operates a nationwide chain of pizza stores. The 500 properties Dan chain vary from low-volume, small town, single screen pizza places to high volume, big city pizza restaurants. Management is considering the purchases of three types of pizza ovens based on baking capacity and cost.. These machines would allow pizza restauarnts to sell freshly better quality pizza. This new feature would be advertised and its intended to increase patronage at the company's pizza places and restaurants. Annual rental costs and operating costs vary with the size of the ovens. The ovens' capacities and costs are as follows: Small Normal Big Annual Capacity 35,000 110,000 200,000 Costs Annual Oven Rental Per Pizza Costs Pizza Ingredients Dough costs (less dough needed in larger ovens) Variable Utilities and Energy 6,000 9,000 15,000 0.13 0.22 0.08 0.11 0.14 0.08 0.09 0.05 0.07 Please calculate the break-even (indifference) points between these three sizes. Concept question: Should management lease the same type of oven and force every chain to use the same oven type? Explain why or why not? NAME COURSE: Managerial Accounting MID-TERM Instructor: Dan Sevall Instructions: THIS MID EXAMS IS TAKE HOME Working in teams is not permitted. If you have any questions, please ask. This exam has 5sections (CLICK ON THE RESPECTIVE TAB for each section) Cost Behavior Brodsky Corp Mulitple Product Breakeven Optometry Clinic Trade-off between fixed and variable costs % 15% 15% 25% 20% 25% 100% Assume a local Subway reported the following results for April and May August September Unit Sales 2,000 2,500 Cost of Food Sold Wages and Salaries Rent Depreciation Utilities Supplies Miscellaneous Total $ $ 1,000 1,525 1,500 200 710 500 110 5,545 $ $ 1,250 1,675 1,500 200 770 625 140 6,160 change 500 250 150 60 125 30 - a. Identify each cost as being fixed, variable or mixed. b. Determine the equation for total operating costs (Fixed + Unit Variable Cost * # of sandwiches) c. Predict the total operating costs for 2750 3000 sandwiches d. Determine the average costs for 2750 3000 sandwiches b) 3,085 + 1.23q fixed cost unit variable cost projected quantity Total cost Average cost Also, Fixed cost unit variable cost projected quantity total cost average cost $3085 $1.23 2750 6,467.5 2.35 $3085 $1.23 3000 6,775 tc/# of pizza $2.26 % cange type of cost 25% 25% 10% 0% 0% 8% 25% 27% Variable cost Mixed cost fixed cost fixed cost Mixed cost Variable cost Mixed cost fixed cost unit variable cost 925 1,500 200 470 (10) 3,085 0.5 0.3 0 0 0.12 0.25 0.06 1.23 sandwiches sandwiches Brodsky Company Data for Brodsky Company is as Follows: Units Sold Revenue Costs 100,000 $ 1,000,000 Fixed Raw Material Direct labor Factory Costs Selling and Administrative Total Costs Operating Income Variable 100,000 100,000 200,000 400,000 $ 300,000 200,000 500,000 100,000 a. Based on the above information, calculate the break-even units. b. If Brodsky is subject to an effective income tax rate of 40%, calculate the number of units Brodsky would have to sell to earn an after-tax profit of $100,000. hint: operating income = Aftertax profit/ (1- tax rate) Answer a) Selling Price Less: Variable cost Contribution Fixed Cost Break Even Point (Units) $ $ $ $ Explanation Computation 10 Total revenue/ total units sold 10 5 Total variable cost/ total units sol 5 5 400,000 80,000 Answer b) Profit after tax required Operating Income Fixed cost Contribution required Contribution per unit No. of units to be sold $ $ $ $ $ 100,000 166,667 400,000 566,667 5 113,334 Break-even Analysis (Multiple Products) 20% Monday's Major Retail Outlet is a company that specializes in selling Printers, Monitors and Desktops. The sales mix is 2:4:4 (i.e. for every 2 Printers sold, 4 Monitors and 4 Desktops are sold). 1) Find the break-even point for each product. The company's annual fixed costs are $28M 2) Additionally, please find the target # of units to reach an operating profit of $14M. 3) Concept question: Which product do you think Monday's sales team will try to promote more and why? (answer in no more than 3 sentences) Printers Monitors Desktops Fixed cost WA Unit CM WA Break-even point b) operating profit fixed cost WA unit CM target # of units Selling Price Per Unit 500 200 800 Contribution Variable Cost Per Margin Per Unit unit sales mix 300 200 100 100 300 500 2 4 4 10 sales mix % weighted average CM*%sales mix 20.0% 40.0 40% 40.0 40% 200.0 280 weighted avaerage unit contribution margin $28,000,000 280 1,000,000 Printers Monitors Desktops sales mix % 20% 100,000 40% 100,000 40% 100,000 20,000 40,000 40,000 Printers Monitors Desktops sales mix% 20.0% 150,000 40.0% 150,000 40.0% 150,000 30,000 60,000 60,000 14,000,000 28,000,000 42,000,000 280 150,000 Optometry Clinic You are evaluating ways to expand an optometry practice and its earnings capacity. Optometrists perform eye exams, pres and contact lenses) and sell corrective lenses. One way to expand the practice is to hire an additional optometrist. The an salary, benefits and payroll taxes is $80,000. You estimate that this individual can conduct two exams per hour at an avera work 40-hour weeks for 48 weeks per year. However, because of scheduling conflicts, patient no shows, training and othe will not be able to conduct, bill and and collect 100% of her available examination time. From past experience, you know that each eye exam drives additional product sales. Each exam will lead to either an eyeg with a net profit of $90 (does NOT include the $45 exam fee) or a contact lens sale of $65 of net profit. On average, 60% 20% lead to contact lens sales, and 20% lead to no further sales. Below are additional incremental costs for the new optometrist: What is the minimum level of examinations the new optometrist must perform to pay for herself (break-even)? Answer: Incremental Fixed Cost Salary of additional optometrist Office Occupancy Costs Leased Equipment Office Staff Additional Fixed Cost $ $ $ $ $ 80,000 10,000 5,000 30,000 125,000 Additional profit per examination Patient examination fees Profit from Eyeglass sale Profit from Contact lens sale Total additional profit per examinatio Break even no of examination $ $ $ $ 45 54 13 112 1117 metry practice and its earnings capacity. Optometrists perform eye exams, prescribe corrective lenses (eyeglasses es. One way to expand the practice is to hire an additional optometrist. The annual cost of the optometrist, including . You estimate that this individual can conduct two exams per hour at an average price to the patient of $45 per exam. The new optome However, because of scheduling conflicts, patient no shows, training and other downtime, the new optometrist ect 100% of her available examination time. eye exam drives additional product sales. Each exam will lead to either an eyeglass sale he $45 exam fee) or a contact lens sale of $65 of net profit. On average, 60% of exams lead to eyeglass sales, ad to no further sales. he new optometrist: Office Occupancy Costs Leased Equipment Office Staff Annual $ 10,000 5,000 30,000 the new optometrist must perform to pay for herself (break-even)? Explanation This is additional exam fees which will be generated Profit per eyeglass which needs to be multiplied with 60% as in 60% cases eyeglass will be sold Profit per Contact lens sale which needs to be multiplied with 20% as in 20% cases Contact lens will be sold Additional fixed cost/ additional profit per examination trist, including of $45 per exam. The new optometrist will act lens will be sold Dan Company Dan Company owns and operates a nationwide chain of pizza stores. The 500 properties Dan chain vary from low-volume, small town, single screen pizza places to high volume, big city pizza restaurants. Management is considering the purchases of three types of pizza ovens based on baking capacity and cost.. These machines would allow pizza restauarnts to sell freshly better quality pizza. This new feature would be advertised and its intended to increase patronage at the company's pizza places and restaurants. Annual rental costs and operating costs vary with the size of the ovens. The ovens' capacities and costs are as follows: Small Normal Big Annual Capacity 35,000 110,000 200,000 Costs Annual Oven Rental Per Pizza Costs Pizza Ingredients Dough costs (less dough needed in larger ovens) Variable Utilities and Energy 6,000 9,000 15,000 0.13 0.22 0.08 0.11 0.14 0.08 0.09 0.05 0.07 Please calculate the break-even (indifference) points between these three sizes. Concept question: Should management lease the same type of oven and force every chain to use the same oven type? Explain why or why not? Answer Indifference point between Small & Normal Indifference Point = Difference in Fixed Cost Difference in Variable Cost Indifference Point (Units) Difference in Fixed Cost/ Difference in Variable cost Explanation 3000 Fixed cost of normal oven less fixed cost of small oven 0.1 Total variable cost of small oven less total variable cost of normal oven 30,000 Indifference point between Normal & Big Indifference Point = Difference in Fixed Cost Difference in Variable Cost Indifference Point (Units) Difference in Fixed Cost/ Difference in Variable cost Explanation 6000 Fixed cost of Big oven less fixed cost of Normal oven 0.12 Total variable cost of normal oven less total variable cost of big oven 50,000 Conclusion: No, management should not lease the same type of oven and force every chain to use the same oven type. Because, indifference point for all 3 types of oven are not the same. Indifference point suggests us at which level of production of no of pizzas, it will be desirable to shift from small oven to normal oven and further from normal oven to big ovens. Further, here the actual annual capacity of the ovens should not be considered for decision making. Hence, in the present case, stores with pizza volumes upto 30,000, it is advisable to use the small oven and for stores with pizza volume between 30,000 and 50,000, it is advisable to use normal oven and if the volume of a store is more than 50,000 pizzas then the Comapany can go for big oven. NAME COURSE: Managerial Accounting MID-TERM Instructor: Dan Sevall Instructions: THIS MID EXAMS IS TAKE HOME Working in teams is not permitted. If you have any questions, please ask. This exam has 5sections (CLICK ON THE RESPECTIVE TAB for each section) Cost Behavior Brodsky Corp Mulitple Product Breakeven Optometry Clinic Trade-off between fixed and variable costs % 15% 15% 25% 20% 25% 100% Assume a local Subway reported the following results for April and May August September Unit Sales 2,000 2,500 Cost of Food Sold Wages and Salaries Rent Depreciation Utilities Supplies Miscellaneous Total $ $ 1,000 1,525 1,500 200 710 500 110 5,545 $ $ 1,250 1,675 1,500 200 770 625 140 6,160 change 500 250 150 60 125 30 - a. Identify each cost as being fixed, variable or mixed. b. Determine the equation for total operating costs (Fixed + Unit Variable Cost * # of sandwiches) c. Predict the total operating costs for 2750 3000 sandwiches d. Determine the average costs for 2750 3000 sandwiches b) 3,085 + 1.23q fixed cost unit variable cost projected quantity Total cost Average cost Also, Fixed cost unit variable cost projected quantity total cost average cost $3085 $1.23 2750 6,467.5 2.35 $3085 $1.23 3000 6,775 tc/# of pizza $2.26 % cange type of cost 25% 25% 10% 0% 0% 8% 25% 27% Variable cost Mixed cost fixed cost fixed cost Mixed cost Variable cost Mixed cost fixed cost unit variable cost 925 1,500 200 470 (10) 3,085 0.5 0.3 0 0 0.12 0.25 0.06 1.23 sandwiches sandwiches Brodsky Company Data for Brodsky Company is as Follows: Units Sold Revenue Costs 100,000 $ 1,000,000 Fixed Raw Material Direct labor Factory Costs Selling and Administrative Total Costs Operating Income Variable 100,000 100,000 200,000 400,000 $ 300,000 200,000 500,000 100,000 a. Based on the above information, calculate the break-even units. b. If Brodsky is subject to an effective income tax rate of 40%, calculate the number of units Brodsky would have to sell to earn an after-tax profit of $100,000. hint: operating income = Aftertax profit/ (1- tax rate) Answer a) Selling Price Less: Variable cost Contribution Fixed Cost Break Even Point (Units) $ $ $ $ Explanation Computation 10 Total revenue/ total units sold 10 5 Total variable cost/ total units sol 5 5 400,000 80,000 Answer b) Profit after tax required Operating Income Fixed cost Contribution required Contribution per unit No. of units to be sold $ $ $ $ $ 100,000 166,667 400,000 566,667 5 113,334 Break-even Analysis (Multiple Products) 20% Monday's Major Retail Outlet is a company that specializes in selling Printers, Monitors and Desktops. The sales mix is 2:4:4 (i.e. for every 2 Printers sold, 4 Monitors and 4 Desktops are sold). 1) Find the break-even point for each product. The company's annual fixed costs are $28M 2) Additionally, please find the target # of units to reach an operating profit of $14M. 3) Concept question: Which product do you think Monday's sales team will try to promote more and why? (answer in no more than 3 sentences) Printers Monitors Desktops Fixed cost WA Unit CM WA Break-even point b) operating profit fixed cost WA unit CM target # of units Selling Price Per Unit 500 200 800 Contribution Variable Cost Per Margin Per Unit unit sales mix 300 200 100 100 300 500 2 4 4 10 sales mix % weighted average CM*%sales mix 20.0% 40.0 40% 40.0 40% 200.0 280 weighted avaerage unit contribution margin $28,000,000 280 1,000,000 Printers Monitors Desktops sales mix % 20% 100,000 40% 100,000 40% 100,000 20,000 40,000 40,000 Printers Monitors Desktops sales mix% 20.0% 150,000 40.0% 150,000 40.0% 150,000 30,000 60,000 60,000 14,000,000 28,000,000 42,000,000 280 150,000 Optometry Clinic You are evaluating ways to expand an optometry practice and its earnings capacity. Optometrists perform eye exams, pres and contact lenses) and sell corrective lenses. One way to expand the practice is to hire an additional optometrist. The an salary, benefits and payroll taxes is $80,000. You estimate that this individual can conduct two exams per hour at an avera work 40-hour weeks for 48 weeks per year. However, because of scheduling conflicts, patient no shows, training and othe will not be able to conduct, bill and and collect 100% of her available examination time. From past experience, you know that each eye exam drives additional product sales. Each exam will lead to either an eyeg with a net profit of $90 (does NOT include the $45 exam fee) or a contact lens sale of $65 of net profit. On average, 60% 20% lead to contact lens sales, and 20% lead to no further sales. Below are additional incremental costs for the new optometrist: What is the minimum level of examinations the new optometrist must perform to pay for herself (break-even)? Answer: Incremental Fixed Cost Salary of additional optometrist Office Occupancy Costs Leased Equipment Office Staff Additional Fixed Cost $ $ $ $ $ 80,000 10,000 5,000 30,000 125,000 Additional profit per examination Patient examination fees Profit from Eyeglass sale Profit from Contact lens sale Total additional profit per examinatio Break even no of examination $ $ $ $ 45 54 13 112 1117 metry practice and its earnings capacity. Optometrists perform eye exams, prescribe corrective lenses (eyeglasses es. One way to expand the practice is to hire an additional optometrist. The annual cost of the optometrist, including . You estimate that this individual can conduct two exams per hour at an average price to the patient of $45 per exam. The new optome However, because of scheduling conflicts, patient no shows, training and other downtime, the new optometrist ect 100% of her available examination time. eye exam drives additional product sales. Each exam will lead to either an eyeglass sale he $45 exam fee) or a contact lens sale of $65 of net profit. On average, 60% of exams lead to eyeglass sales, ad to no further sales. he new optometrist: Office Occupancy Costs Leased Equipment Office Staff Annual $ 10,000 5,000 30,000 the new optometrist must perform to pay for herself (break-even)? Explanation This is additional exam fees which will be generated Profit per eyeglass which needs to be multiplied with 60% as in 60% cases eyeglass will be sold Profit per Contact lens sale which needs to be multiplied with 20% as in 20% cases Contact lens will be sold Additional fixed cost/ additional profit per examination trist, including of $45 per exam. The new optometrist will act lens will be sold Dan Company Dan Company owns and operates a nationwide chain of pizza stores. The 500 properties Dan chain vary from low-volume, small town, single screen pizza places to high volume, big city pizza restaurants. Management is considering the purchases of three types of pizza ovens based on baking capacity and cost.. These machines would allow pizza restauarnts to sell freshly better quality pizza. This new feature would be advertised and its intended to increase patronage at the company's pizza places and restaurants. Annual rental costs and operating costs vary with the size of the ovens. The ovens' capacities and costs are as follows: Small Normal Big Annual Capacity 35,000 110,000 200,000 Costs Annual Oven Rental Per Pizza Costs Pizza Ingredients Dough costs (less dough needed in larger ovens) Variable Utilities and Energy 6,000 9,000 15,000 0.13 0.22 0.08 0.11 0.14 0.08 0.09 0.05 0.07 Please calculate the break-even (indifference) points between these three sizes. Concept question: Should management lease the same type of oven and force every chain to use the same oven type? Explain why or why not? Answer Indifference point between Small & Normal Indifference Point = Difference in Fixed Cost Difference in Variable Cost Indifference Point (Units) Difference in Fixed Cost/ Difference in Variable cost Explanation 3000 Fixed cost of normal oven less fixed cost of small oven 0.1 Total variable cost of small oven less total variable cost of normal oven 30,000 Indifference point between Normal & Big Indifference Point = Difference in Fixed Cost Difference in Variable Cost Indifference Point (Units) Difference in Fixed Cost/ Difference in Variable cost Explanation 6000 Fixed cost of Big oven less fixed cost of Normal oven 0.12 Total variable cost of normal oven less total variable cost of big oven 50,000 Conclusion: No, management should not lease the same type of oven and force every chain to use the same oven type. Because, indifference point for all 3 types of oven are not the same. Indifference point suggests us at which level of production of no of pizzas, it will be desirable to shift from small oven to normal oven and further from normal oven to big ovens. Further, here the actual annual capacity of the ovens should not be considered for decision making. Hence, in the present case, stores with pizza volumes upto 30,000, it is advisable to use the small oven and for stores with pizza volume between 30,000 and 50,000, it is advisable to use normal oven and if the volume of a store is more than 50,000 pizzas then the Comapany can go for big oven