! Required information [The following information applies to the questions displayed below.] These questions relate to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
! 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 5,000 12,000 20,000 3,000 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 meals 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 athletic director of a local high school has approached Bene Petit with a special offer. The director would like to promote meals to athletes and their families to encourage healthy eating and as a fundraising opportunity. The meals would be delivered directly to the school, where families would pick them up and pay the school directly. The school would then pay Bene Petit. The following additional details are available about the special order: The athletic director has requested a 40% discount off the normal price for this bulk order. Families who purchase the meals would receive 1/2 of the discount and the school would put the other 20% into a fund to support an athlete's award banquet. ⚫ The fundraiser would run for 3 months (12 weeks), and the director estimates that about 30 families would order 3 family-size meals per week. Variable manufacturing costs for a family-size meal are $5.20 for a customer meal and $1.25 for a donated meal. • Variable delivery expenses on a normal order are $2 per customer order. • Weekly delivery expenses are estimated at $50 for this special order. • Bene Petit has the capacity to deliver donated meals without increasing delivery expense to community partners. • Bene Petit has the capacity to fill the order without disrupting normal operations but estimates that at least 5 of the families are already Bene Petit customers who currently order 4 family-size meals per week. • Even if the special order is not profitable, it could be counted as part of Bene Petit's social mission to contribute to the local community. ! 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 5,000 12,000 20,000 3,000 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 meals 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 athletic director of a local high school has approached Bene Petit with a special offer. The director would like to promote meals to athletes and their families to encourage healthy eating and as a fundraising opportunity. The meals would be delivered directly to the school, where families would pick them up and pay the school directly. The school would then pay Bene Petit. The following additional details are available about the special order: The athletic director has requested a 40% discount off the normal price for this bulk order. Families who purchase the meals would receive 1/2 of the discount and the school would put the other 20% into a fund to support an athlete's award banquet. ⚫ The fundraiser would run for 3 months (12 weeks), and the director estimates that about 30 families would order 3 family-size meals per week. Variable manufacturing costs for a family-size meal are $5.20 for a customer meal and $1.25 for a donated meal. • Variable delivery expenses on a normal order are $2 per customer order. • Weekly delivery expenses are estimated at $50 for this special order. • Bene Petit has the capacity to deliver donated meals without increasing delivery expense to community partners. • Bene Petit has the capacity to fill the order without disrupting normal operations but estimates that at least 5 of the families are already Bene Petit customers who currently order 4 family-size meals per week. • Even if the special order is not profitable, it could be counted as part of Bene Petit's social mission to contribute to the local community.
Expert Answer:
Answer rating: 100% (QA)
Here are the steps to calculate the financial outcomes for Bene Petit and the local high school fundraising special order 1 Calculate normal sales pri... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
The West Side Group provides and manages software and network systems for businesses and communities. West Side sells its products through various means. It uses its sales force to sell to large...
-
What is the main reason the Bike Company needs to report figures separately for its various areas of operation? Choose the correct answer. A Sales requires these figures to plan sales activities. B...
-
Inventory costing $9,600 is purchased and invoiced on July 28 under terms of 2/10, n/30. Compute the payment amount on August 6. How much would the payment be on August 9? What explains the...
-
Determine Vo and ID for the networks of Fig. 2.153. Si 0 10 mA 2.2 k 6.8 k Si
-
Are the input specifiers for scanf() identical to the output specifiers for printf()?
-
The board of directors of the Cortez Beach Yacht Club (CBYC) is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about...
-
(5) A small maintenance project consists of the following jobs whose precedence relationships are given below: Job 1-2 1-3 2-3 2-5 3-4 Immediate Predecessor 15 15 3 5 8 8 Activity 3-6 4-5 4-6 5-6 6-7...
-
Scenario You have been asked to design a database system for ConsultMatch, a company that wants to match consultants and clients via an online service. They have an existing list of 1500 consultants...
-
Examine the principles of organization in the light of criticisms.
-
Distinguish between devious and legitimate political tactics in organizations.
-
What is meant by corporate or organizational culture and how does it differ from organizational climate?
-
Comment on an open system of organization, with reference to socio-technical systems.
-
What are the organizational factors that contribute to political behaviour?
-
This year, Company J reported current earnings and profits of $200,000 and accumulated earnings and profits of $200,000. It distributed $250,000 to its only shareholder, Sam on the last day of the...
-
Revol Industries manufactures plastic bottles for the food industry. On average, Revol pays $76 per ton for its plastics. Revol's waste-disposal company has increased its waste-disposal charge to $57...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-4. Ivan and Irene paid the following in 2012 (all by check or can otherwise be...
-
Frank Willingham has the following transactions during the year: Sale of office equipment on March 15 that cost $20,000 when purchased on July 1, 2010. Frank has claimed $5,000 in depreciation and...
-
Janie graduates from high school in 2012 and enrolls in college in the fall. Her parents pay $4,000 for her tuition and fees. a. Assuming Janie's parents have AGI of $170,000, what is the American...
-
Identify a key position that you intend to make during your presentation. Using Table 14.2 as a guide, write out how you could use the PREP (PositionReasonsExamplePosition) method to effectively...
-
Identify a topic of interest. Create a storyboard to outline the titles, content, and related story line of your PowerPoint slides.
-
Create an electronic slide presentation for your topic of interest. Ensure that it conveys your key messages effectively.
Study smarter with the SolutionInn App