Question: acct 30 please explain and solve briefly Jason is a recent graduate from the Kwarten Polytechnic University's (KPU) horticulture program. Mason is planning to start

acct 30 please explain and solve briefly
acct 30 please explain and solve briefly Jason is a recent graduate
from the Kwarten Polytechnic University's (KPU) horticulture program. Mason is planning to

Jason is a recent graduate from the Kwarten Polytechnic University's (KPU) horticulture program. Mason is planning to start a business producine vegetables in particular bell peppers. Jason's father has a good-sized greenhouse in his yard which is available for Jason to rent. His father requires $500 per month for the use of his greenhouse. Three important factors in greenhouse growing are lighting, temperature, and humidity Jason has conducted research believes they can be managed by upgrading the greenhouse at a cost of $500 per month. In addition, he will need to purchase seeds, fertilizer, net pots. clay pebbles, and some other supplies. Jason estimates that the cost for all the necessary supplies will be 20 cents for each bell pepper he produces. Water and electricity use are expected to cost 10 cents per bell pepper. He thinks he can produce a maximum of 3000 bell peppers every month. The local market for bell peppers is $4.20 per pack of 3 bell peppers, but he anticipates he may have to price down each pack and sell his peppers for $3 per pack ($1 for each bell pepper) to be able to compete. To determine his expected profit, Jason calculated his income based on the number of bell peppers he could produce each month. O 0 Number of Bell 300 1500 3000 Peppers Revenue 300 1500 3000 Greenhouse 500 500 500 500 rent Greenhouse 500 500 500 500 Upgrade Total cost 1000 1090 1.450 1900 Net Income -$1,000.00 -$790.00 $50.00 $1,100.00 Jason wanted to know if there was a way of determining how many bell peppers he needed to produce and sell to cover his expenses. He also wanted to know how to determine the effects on the net income of changes in the price per bell pepper, the cost of materials, and other costs. What if variable costs increase to $0.40 for each pepper what is the new break-even point in units? What If the material cost remains at the original $0.30, the rental cost is decreased to $300, and he sold 3000 peppers, what would be the resulting profit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!