BGB Tuna Processing manufactures and sells canned tuna to restaurants. Variable cost per can amounts to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
BGB Tuna Processing manufactures and sells canned tuna to restaurants. Variable cost per can amounts to $6 and the selling price of each can is $25. Total annual fixed costs amount to $14,630,000. Sales are estimated to amount to 1,470,000 cans of tuna. Do not enter dollar signs or commas in the input boxes. Round dollar answers to the nearest whole number and round BE units up to the nearest whole number, unless otherwise indicated. a) Calculate the following values. Gross Sales: $ Total Variable Costs: $ Contribution Margin: $ Operating Profit: $ b) If the company sells according to their estimates, what is the degree of operating leverage? The break-even point (in units)? BGB Tuna Processing manufactures and sells canned tuna to restaurants. Variable cost per can amounts to $6 and the selling price of each can is $25. Total annual fixed costs amount to $14,630,000. Sales are estimated to amount to 1,470,000 cans of tuna. Do not enter dollar signs or commas in the input boxes. Round dollar answers to the nearest whole number and round BE units up to the nearest whole number, unless otherwise indicated. a) Calculate the following values. Gross Sales: $ Total Variable Costs: $ Contribution Margin: $ Operating Profit: $ b) If the company sells according to their estimates, what is the degree of operating leverage? The break-even point (in units)?
Expert Answer:
Answer rating: 100% (QA)
a Lets calculate the values as requested Gross Sales Selling Price Sales Volume Gross Sa... View the full answer
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Posted Date:
Students also viewed these accounting questions
-
BGB Tuna Processing manufactures and sells canned tuna to restaurants. Variable cost per can amounts to $6 and the selling price of each can is $25. Total annual fixed costs amount to $14,630,000....
-
You are a senior manager in Audit Services Associates, a national audit firm with offices in Lusaka, Ndola, Kitwe, and Livingstone. On 1 February 2022, your firm was appointed to audit Southern Coal...
-
HackLand Election In elections that use the ballot box system for voting, each voter writes the name of a candidate on a ballot and places it in the ballot box. The candidate with the highest number...
-
Using the information for Sarot, Inc., in SE 4 and SE 5, compute the current ratio, quick ratio, receivable turnover, days sales uncollected, inventory turnover, days inventory on hand, payables...
-
Now assume Citrus Products begins producing the same liter of orange juice in Spain. The product costs 2.0 euros to produce and ship to Sweden, where it can be sold for 20 kronor. What is the dollar...
-
To refresh air in a room, a counterflow heat exchanger, see Fig. P12.72, is mounted in the wall, drawing in outside air at 0.5C, 80% relative humidity and pushing out room air, 40C, 50% relative...
-
Which part of the brain is responsible for balance and posture?
-
Stein, a mechanic, and Beal, a life insurance agent, entered into a written contract for the sale of Steins tractor to Beal for $6,800 cash. It was agreed that Stein would tune the motor on the...
-
Compute the company s net sales for the year. Compute the company s total cost of merchandise purchased for the year. Prepare a multiple - step income statement that includes separate categories for...
-
At the end of the day the clerk for Wales Variety Shop noticed an error in the amount of cash he should have. Total cash sales from the sales tape were $1,204, whereas the total cash in the register...
-
Why are writing skills important for a career in criminal justice? Research a position you would like to have in criminal justice and share at least 1 way writing is used in the position. What can...
-
13. Suppose you have two types of users for your software: basic users and professionals. The value each group places on your basic program and your advanced program is given in the table below....
-
A1.(a)"The U.K.bank Northern Rock became the first high-profile casualty ofthe global financial crisis of 2007-2008 when it suffered its depositor runin September...
-
On January 1, 2016, you deposited $6,600 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1....
-
Find all possible values of rank(A) as a varies. (Enter your answers as a comma-separated list.) rank(A) = a 2 3 3 -2 A = -2-1 a X
-
How does the use of allusions to literary predecessors and canonical texts contribute to the development of literary traditions and genres, creating a dialogic relationship between past and present...
-
Whiting Petroleum Corp: Is it possible to come back after bankruptcy? Many companies suffered in 2020 and declared bankruptcy due to the spread of the Corona pandemic and the subsequent measures to...
-
Ball bearings are widely used in industrial applications. You work for an industrial food machinery manufacturer and your role is to design the driveshaft assembly on a new type of equipment that...
-
Munn Bicycle Company manufactures bicycles specifically for college campuses. They sell for $100 and are very sturdy, with built-in saddlebags on the rear designed to carry backpacks. Selected data...
-
Simon and Garfunkel operate separate, but related, businesses in the same town. The two have been debating which of them has the least amount of fixed costs. Simon, because he has always come first,...
-
Simon Enterprises applies variable overhead at a rate of $1.50 per direct labor hour and fixed overhead at a rate of $1.75 per direct labor hour. The company budgets 2 direct labor hours for each of...
-
In the section of his 2007 letter to the shareholders of Berkshire Hathaway titled Fanciful FiguresHow Public Companies Juice Earnings, Warren Buffett referred to the investment return assumption...
-
Based on 2012 revenues, the six largest providers of oilfield services are: 1. Schlumberger Ltd. (NYSE: SLB) Revenues: $42.1 billion Net income: $5.5 billion 2. Halliburton (NYSE: HAL) Revenues:...
-
On 21 September 2000, Intel Corporation (NASDAQ -GS: INTC)3 issued a press release containing information about its expected revenue growth for the third quarter of 2000. The announced growth fell...
Study smarter with the SolutionInn App