A business student who recently completed Business Decision Making has decided to set up a food cart

Fantastic news! We've Found the answer you've been seeking!

Question:

A business student who recently completed Business Decision Making has decided to set up a food cart opposite your Lucro Island hotel selling artisan ice creams in 500g tubs to hotel guests.

They have provided you with the following estimates for the next quarter:

Expected Sales (units)	30,000
Selling price per unit	$35
Variable cost per unit	$10
Total fixed costs	$350,000

REQUIRED:

a) Calculate the breakeven point in units and sales dollars. Show your workings.

b) Calculate the margin of safety in sales dollars. Show your workings.

Submit your answer in text form below.

Related Book For answer-question

Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

See More Books

Posted Date: Apr 28, 2022 06:26 AM

See More Questions

A manufacturing company has provided you with the following data, which relate to component RYX for the period which has just ended: Overheads are absorbed at a rate per standard labour hour. (a) (i)...
The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula....
A young couple has decided to set aside some money to fund their 5-year-old daughter's college education. They want to deposit the sum in an account that earns 8% compounded continuously. Beginning...
Explain the relationship between three Statement objects, and illustrate why and how the CallableStatement object can use the setXXX() methods defined in the PreparedStatement interface.
Why are many correct logical DFD solutions possible? Why is only one correct physical DFD solution possible?
The Ottomans own a winter cabin in Durango, Colorado. Theypurchased the cabin in 2004 for $65,000. During 2018, a blizzard, afederally-declared disaster, partially destroys the cabin. The fairmarket...
What purposes are served by examining payments to creditors subsequent to the statement date?
(a) What is the par or stated value of Coca-Colas and PepsiCos common or capital stock? (b) What percentage of authorized shares was issued by Coca-Cola at December 31, 2007, and by PepsiCo at...
MyZ Company is an innovative company that recently invented some new technology that allows AI to work with hospital medical files on patients with severe health conditions. AI analyzes all existing...
In the new system for Holiday Travel Vehicles, the system users follow a two-stage process to record complete information on all of the vehicles sold. When an RV or trailer first arrives at the...
A recent survey on food labeling found that 41% of a random sample of 1,008 American adults report looking for information on food labels about whether the food they are purchasing is organic. Use...
Browne offered to sell Houlihan his recently purchased 50-inch plasma screen television set for $6,400. Houlihan sent Browne an e-mail accepting the offer but asked if she could pay Browne in four...
Fletcher-Harlee Corp., a general contractor, solicited bids from subcontractors on various aspects of a building project for which it intended to compete. In response, Pote Concrete Contractors, Inc....
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn. A contract resulting from the use of undue infl uence is voidable at the option of the...
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn. A contract of adhesion is characterized by unequal bargaining power of the parties.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn. Intentional concealment of material facts is just as fraudulent as making false...
Write the pytorch code to implement the overall architecture of the decoder part of a transformer from input to output. I basically need you to explain the overall code in the bigram model class.
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
Use the CW method to determine which mutually exclusive bridge design (L or H) to recommend, based on the data provided in the accompanying table. The MARR is 15% per year. Bridge Design L Bridge...
What is the equivalent AW of a two-year contract that pays $2,000 at the beginning of the first month and increases by $200 for each month thereafter? MARR = 12% compounded monthly. (a) $10,616 (b)...
Your FICO score makes a big difference in how lenders determine what interest rate to charge you. Consider the situation faced by Edward and Jorge. Edward has a fairly poor FICO score of 660 and, as...
In capital budgeting, a distinction has been made regarding the process of "assessment" as being distinctively different than "evaluation." What is the difference and why is it important?
If bond money tends to be the least expensive cost of capital, why do we bother with the WACC in project analysis? It seems like the cost of equity is hard to estimate, and maybe we are just guessing...
In developing a capital budgeting portfolio, there are times when a project with a lower return is squeezed in to the budget but a higher-return project is excluded. How can this be fair? Wouldn't...

A business student who recently completed Business Decision Making has decided to set up a food cart

Question:

Expert Answer:

Contribution marginSalesVariable cost 3510 25 p... View the full answer

Engineering Economy

Students also viewed these accounting questions