Required information [The following information applies to the questions displayed below.) These questions relate to the...
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Required information [The following information applies to the questions displayed below.) These questions relate to the Integrated Analytics Case: Bene Petit. Select the appropriate eBook link to open the Case Overview, Case Background, and Part 3: Managerial Decision Making. The following table summarizes the operating results for Bene Petit's first year of operations: Customer Meals Sold Total Customer Servings Bene Petit First Year Operating Data: Single (1 serving) Dual (2) servings) Family (4) servings) Total 3,000 3,000 5,000 12,000 20,000 10,000 48,000 61,000 750 1,250 3,000 5,000 3,000 5,000 12,000 20,000 6 10 24 40 Customer Orders (Average 4 neals per order) Number of Donated Meals (1 per customer meal) Number of Donated Deliveries (500 meals per delivery) Additional information about selling prices, variable costs, and fixed costs is summarized below. The average sales price for customer meals is $5 per serving. The average direct materials (ingredients) cost of customer meals is $1 per serving. Direct labor costs average $0.75 per customer meal. Variable manufacturing overhead costs are applied at a rate equal to 60% of direct labor. The delivery expense for customer meals is $2 per customer order. The incremental cost of producing the donated meals is $1.25 per meal. The delivery expense for donated meals is $125 per delivery to community partners.. The following fixed costs are allocated to customer meals based on total sales revenue: Fixed manufacturing overhead costs are $75,000 per year. Fixed selling expenses are $29,000 per year. Fixed administrative expenses are $40,000 per year. The attached excel file shows a contribution margin income statement based on these starting assumptions. You should return to this starting spreadsheet for each part of the case below. Part 3 CVP Analysis (starting data).xlsx 1. Treat the following questions as independent scenarios. Use the starting spreadsheet to answer the following questions. 1. Treat the following questions as independent scenarios. Use the starting spreadsheet to answer the following questions. a. What was Bene Petit's net operating income during the first year of operations? Net operating income b. What was the average contribution margin per customer meal sold? Average contribution margin per customer meal c. What was the overall contribution margin ratio (as a percentage of total sales revenue)? Note: Enter the percentage to two decimal places. Overall contribution margin ratio % d. What is Bene Petit's degree of operating leverage for the first year of operations? Degree of operating leverage Required information [The following information applies to the questions displayed below.) These questions relate to the Integrated Analytics Case: Bene Petit. Select the appropriate eBook link to open the Case Overview, Case Background, and Part 3: Managerial Decision Making. The following table summarizes the operating results for Bene Petit's first year of operations: Customer Meals Sold Total Customer Servings Bene Petit First Year Operating Data: Single (1 serving) Dual (2) servings) Family (4) servings) Total 3,000 3,000 5,000 12,000 20,000 10,000 48,000 61,000 750 1,250 3,000 5,000 3,000 5,000 12,000 20,000 6 10 24 40 Customer Orders (Average 4 neals per order) Number of Donated Meals (1 per customer meal) Number of Donated Deliveries (500 meals per delivery) Additional information about selling prices, variable costs, and fixed costs is summarized below. The average sales price for customer meals is $5 per serving. The average direct materials (ingredients) cost of customer meals is $1 per serving. Direct labor costs average $0.75 per customer meal. Variable manufacturing overhead costs are applied at a rate equal to 60% of direct labor. The delivery expense for customer meals is $2 per customer order. The incremental cost of producing the donated meals is $1.25 per meal. The delivery expense for donated meals is $125 per delivery to community partners.. The following fixed costs are allocated to customer meals based on total sales revenue: Fixed manufacturing overhead costs are $75,000 per year. Fixed selling expenses are $29,000 per year. Fixed administrative expenses are $40,000 per year. The attached excel file shows a contribution margin income statement based on these starting assumptions. You should return to this starting spreadsheet for each part of the case below. Part 3 CVP Analysis (starting data).xlsx 1. Treat the following questions as independent scenarios. Use the starting spreadsheet to answer the following questions. 1. Treat the following questions as independent scenarios. Use the starting spreadsheet to answer the following questions. a. What was Bene Petit's net operating income during the first year of operations? Net operating income b. What was the average contribution margin per customer meal sold? Average contribution margin per customer meal c. What was the overall contribution margin ratio (as a percentage of total sales revenue)? Note: Enter the percentage to two decimal places. Overall contribution margin ratio % d. What is Bene Petit's degree of operating leverage for the first year of operations? Degree of operating leverage
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