KOI student society runs charity events to have dinner with famous movie star, Richard Chang. Unfortunately,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
KOI student society runs charity events to have dinner with famous movie star, Richard Chang. Unfortunately, the events have not been successful. Gerard Teo, the accountant has presented the society with the following CVP analysis. Sales revenue (100 guests) Variable cost of dinner and events Variable promotional and other expenses Contribution margin Fixed expenses: Loss Venue Hire (Maximum capacity 300 guests) Selling, General and Administrative Guarantee to Richard Chang A) What is the contribution margin per unit (guest)? Amount $100,000 $25,000 $15,000 $60,000 C) What is the break-even point in sales dollars? $50,000 $20,000 $20,000 $90,000 ($30,000) Percentage 100% 25% 15% 60% B) What is the break-even number of guests for the charity event? 50% 20% 20% 90% -30% D) If the society wants to earn a profit before tax of $ $30,000, how many tickets must be sold? E) If the fixed costs increased from $90,000 to $105,000, what is the break- even in unit? KOI student society runs charity events to have dinner with famous movie star, Richard Chang. Unfortunately, the events have not been successful. Gerard Teo, the accountant has presented the society with the following CVP analysis. Sales revenue (100 guests) Variable cost of dinner and events Variable promotional and other expenses Contribution margin Fixed expenses: Loss Venue Hire (Maximum capacity 300 guests) Selling, General and Administrative Guarantee to Richard Chang A) What is the contribution margin per unit (guest)? Amount $100,000 $25,000 $15,000 $60,000 C) What is the break-even point in sales dollars? $50,000 $20,000 $20,000 $90,000 ($30,000) Percentage 100% 25% 15% 60% B) What is the break-even number of guests for the charity event? 50% 20% 20% 90% -30% D) If the society wants to earn a profit before tax of $ $30,000, how many tickets must be sold? E) If the fixed costs increased from $90,000 to $105,000, what is the break- even in unit?
Expert Answer:
Answer rating: 100% (QA)
A What is the contribution margin per unit guest ANSWER The contribution margin per unit guest is 60000 WORKING The contribution margin is the sales r... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
Students also viewed these accounting questions
-
Find the most recent Form 10-K for Microsoft. Read through the report to determine how many segments of business exist within Microsoft. What approach does Microsoft appear to use in identifying...
-
Find the most recent level of M2 (FRED code: M2SL) and of the U.S. population (FRED code: POP). Compute the quantity of money divided by the population. Do you think your answer is large? Why?
-
Financial statements for Bernard Company follow. Required Prepare a horizontal analysis of both the balance sheet and income statement. BERNARD COMPANY Balance Sheets As of December 31 2012 2011...
-
Find the incarization of the function x) - Vx+ 4 at a-5 and use it to approximate the numbers 8.97 and y9.05. Are these approximations overestimates or underestimates? SOLUTION The derivative of fx)...
-
The distance from Earth to the Moon is approximately 240,000 mi. (a) What is this distance in meters? (b) The peregrine falcon has been measured as traveling up to in a dive. If this falcon could fly...
-
In the year 107 WBCE (Way before the Common Era) the Gondwanaland Chairman of Production reported that the gosum berry growers were able to meet an average demand of 700 barrels of gosum berries per...
-
Suppose you make 15 equal annual deposits of \($1,000\) each into a bank account paying 5% interest per year. The first deposit will be made one year from today. How much money can be withdrawn from...
-
The lost Israeli soldier mentioned in Problem 2-21 decides to rest for a few minutes before entering the desert oasis he has just found. Closing his eyes, he dozes off for 15 minutes, wakes, and...
-
Figure 1 of 1 EXECUTE Part E Write the equation for the x-coordinate of the ball as a function of time t. Express your answer in terms of the variables vo, 0, 0, t, and the acceleration due to...
-
Assume the same information for Turcotte as in Problem 11-36. Working brake pads yield a profit of $25. If defective brake pads are identified before they are shipped, they can be fixed and sold as...
-
Grow Rite is a partnership owned by T. Tree and B. Branch. At January 1, 2022 the partner's capital accounts were: T. Tree, $26,500 and B. Branch $19,300. During 2022, Tree contributed $5,500 in cash...
-
Theory Y management uses the empowerment of workers and gives them the power to report "bad workers" to management so that these bad workers will be reprimanded.
-
2 5 . 0 L of an ideal gas at 2 7 8 K and 4 . 1 1 atm are heated to 3 9 3 K with a new pressure of 6 . 3 5 atm. What is the new volume ( in L ) ?
-
Explain what happens to a hexane solution of decan thiol - capped gold nanocrystals when it is carefully syringed onto the water's surface. How do you think the optical properties of the gold...
-
The following accounts are in Whispering Winds Limiteds December 3 1 , 2 0 2 3 trial balance: Prepaid Rent $ 1 , 5 0 0 ; FV - OCI Investments $ 6 9 , 0 0 0 ; Unearned Revenue $ 8 , 1 0 0 ; Land Held...
-
The simple interest on an investment is directly proportional to the amount of the investment. By investing $ 4 2 5 0 in a certain bond issue, you obtained payment of $ 2 3 3 . 7 5 after 1 year. Find...
-
1. A simple device that is used to test the strength of antifreeze in cars consists of a small tube that has several small, coloured spheres inside it. When antifreeze is admitted into the tube, some...
-
Starr Co. had sales revenue of $540,000 in 2014. Other items recorded during the year were: Cost of goods sold ..................................................... $330,000 Salaries and wages...
-
The information presented below is for Steff en Sweet Shop. a. Interest of $12,600 is payable for September 2012 through December 2012 on a 7%, $540,000 loan and has not been recorded. b. Rent of...
-
The following pension information is for three different companies. For each company, compute the missing amount oramounts. Company 1 Compny 2 Company 3 $75,000 s lel 100,000 (25,000) Pension fund...
-
For the following four cases, use the principle of financial statement articulation to compute the missingamounts. Case B Case A Case D Case C Dividends Cash, beginning Retained earnings, ending Net...
-
Name some characteristics that allow you to observe light diffraction.
-
Planar waves from a monochromatic light source are normally incident on a circular obstacle, which casts a shadow on a screen positioned behind the obstacle. What do the wave properties of light...
-
Which wavelength of electromagnetic radiation do you expect to be diffracted by a window screen? What is the frequency of this radiation?
Study smarter with the SolutionInn App