# three more questions

## Project Description:

question 1
cesar's bottlers bottles soft drinks in a factory that can operate either one shift, two shifts, or three shifts per day. each shift is eight hours long. the factory is closed on weekends. the sales price of \$11 per case bottled and the variable cost of \$4 per case remain constant regardless of volume.

cesar's bottlers can increase volume by opening and staffing additional shifts. the company has the following three choices:

daily volume range
(number of cases bottled) total fixed costs
per day
1 shift (0–5,000) \$ 34,000
2 shifts (5,001–8,000) 29,000
3 shifts (8,001–10,000) 36,000

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required:
(a) calculate the break-even point(s). (round your answer to the nearest whole number.)

break-even points
1 shift cases
2 shifts cases
3 shifts cases

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(b) if cesar's bottlers can sell all the units it can produce, should it operate at one, two, or three shifts?

(click to select)3 shifts1 shift2 shifts

question 2
the manager of kima’s food mart estimates operating costs for the year will include \$850,000 in fixed costs.

required:
(a) find the break-even point in sales dollars with a contribution margin ratio of 37 percent.(round your answer to the nearest dollar amount. omit the "\$" sign in your response.)

break even point in sales dollars \$

(b) find the break-even point in sales dollars with a contribution margin ratio of 29 percent.(round your answer to the nearest dollar amount. omit the "\$" sign in your response.)

break even point in sales dollars \$

(c) find the sales dollars required to generate a profit of \$250,000 for the year assuming a contribution margin ratio of 37 percent. (round your answer to the nearest dollar amount. omit the "\$" sign in your response.)

sales required \$

question 3
cambridge, inc., is considering the introduction of a new calculator with the following price and cost characteristics:

sales price \$ 23 each
variable costs \$ 7 each
fixed costs \$ 22,000 per month

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assume that the projected number of units sold for the month is 6,000. consider requirements (2), (3), and (4) independently of each other.

requirement 1:
what will the operating profit be? (omit the "\$" sign in your response.)

operating profit \$

requirement 2:
(a) what is the impact on operating profit if the sales price decreases by 10 percent? (do not round intermediate calculations. omit the "\$" sign in your response.)

operating profit (click to select)increasesdecreases by \$

(b) what is the impact on operating profit if the sales price increases by 20 percent? (do not round intermediate calculations. omit the "\$" sign in your response.)

operating profit (click to select)decreasesincreases by \$

requirement 3:
(a) what is the impact on operating profit if variable costs per unit decrease by 10 percent? (do not round intermediate calculations. omit the "\$" sign in your response.)

operating profit (click to select)increasesdecreases by \$

(b) what is the impact on operating profit if variable costs per unit increase by 20 percent? (do not round intermediate calculations. omit the "\$" sign in your response.)

operating profit (click to select)decreasesincreases by \$

requirement 4:
suppose that fixed costs for the month are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. what impact will these cost changes have on operating profit for the month? will profit go up? down? by how much? (do not round intermediate calculations. omit the "\$" sign in your response.)

operating profit (click to select)increasesdecreases by \$
Skills Required:
Project Stats:

Price Type: Negotiable

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