Question: need help with S7.1 so i can answer questions 4,5 Please complete the following chapter 7 practice problems Problem S7.1: Ukrops Grocery (Richmond VA) has
need help with S7.1 so i can answer questions 4,5
Please complete the following chapter 7 practice problems Problem S7.1: Ukrops Grocery (Richmond VA) has a new line of kitchen boxes for supermarket distribution. The current Fixed Costs (F$) are $5,000 and Variable Costs (V$) to be $1.50 per unit. Selling Price (PS) is $3.00 per unit. 1) Compute breakeven in units and dollars (BEU): 2) Assuming Ukrops sells 5,000 units, compute Total costs (TC), Revenue (REVT) & Profit (Pro$): (TC - (FS)+(VS), REVT (UH)(PS); Pro$ - REVT-TC) Fixed Costa BEU (Price-ves) FC BEP 3) An alternative vendor approaches Ukrops suggesting they are able to decrease variable costs to $1.00 per unit, with a small increase in fixed costs ($3,000). Given Ukrops increasing demand, determine at what point the new process should be considered. Compute the Switching Point (SW): SW - [F$+(V$(#U)] - [F5, +(V$.)(HU)] LI TY Question 4 (2 points) Consider your work on handout problem S7.1 (the Ukrops Grocery). If Ukrops sells $2,500 worth of product they will: Ukrops will make a small profit. Ukrops will not break even, and actually loose money. Ukrops will just barely breakeven Ukrops will earn a profit. Question 5 (2 points) Consider your work on handout problem S7,1 (the Ukrops Grocery). If Ukrops sells 6,000 units: Ukrops will not make a larger profit using choice A. Ukrops will make a larger profit using choice B. Ukrops will make the same profit with both A and B. Ukrops will not earn a profit with either process

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