Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information for the next two (2) questions: Bearkat Deli operates in Huntsville, Texas. The anticipated variable cost per sandwich meal will amount

image text in transcribed
Use the following information for the next two (2) questions: Bearkat Deli operates in Huntsville, Texas. The anticipated variable cost per sandwich meal will amount to $3.00 and the fixed costs will total $5,000 per month. The expected sales price for a sandwich meal is $7.00 per unit. 6. How many sandwich meals must be sold in order to breakeven? a 2,241 meals b. 690 meals C. 1,250 meals d. 1,538 meals 7. Using the above information as the original data, the deli is now reaching for a target profit of $10,000 for the month. They believe if they take out a $1,000 advertising campaign, increasing their fixed costs, they will be able to sell the sandwich meals for a higher price and make the targeted profit. If Bearkat Deli decides to increase its sales price by $1.00, which of the following statements is correct? (Round any decimals to 3 decimal places while calculating) The deli needs to sell 3,000 sandwich meals in order to make a target profit of $10,000 for the month. b. The deli needs to have gross sales of $25,600 in order to make a target profit of $10,000 for the month. The deli needs to have gross sales of $24,000 in order to make a target profit of $10,000 for the month. d. The dell would need to sell 1,905 sandwich meals in order to reach the target profit of $10,000 c. 8. A 15% increase in production volume will result in a 15% increase in A. variable cost per unit B. total administration costs C. contribution margin D. fixed cost per unit

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

Human Resource Management

Authors: Robert L. Mathis, John H. Jackson

13th Edition

053845315X, 978-0538453158

More Books

Students also viewed these Accounting questions

Question

d. Is the program accredited?

Answered: 1 week ago