Question :
176.Mango Enterprises produces mango-flavored tea bags. March’s budget indicated that : 1302737
176.Mango Enterprises produces mango-flavored tea bags. March’s budget indicated that sales of 500 boxes of tea bags would incur fixed costs of $2,380. The company’s contribution margin ratio is 35%, and its contribution margin per box of tea bags is $4. How much sales revenue must Mango Enterprises generate to break-even?
177.Resin Products has estimated that fixed costs per month are $79,200 and variable cost per dollar of sales is $0.52.
a.What is the break-even point per month in sales?
b.What level of sales is needed for a monthly profit of $24,000?
c.For the month of July, the company anticipates sales of $240,000. What is the expected level of profit?
178.Disc Buddy, Inc. produces flash drives. The selling price is $8 per drive. The variable cost of production is $2.40 per unit and the fixed cost per month is $3,600.
a.Calculate the contribution margin associated with each flash drive.
b.In August, the company sold 200 more flash drives than planned. What is the expected effect on profit of selling the additional drives?
c.Calculate the contribution margin ratio associated with one flash drive.
d.In October, the company had sales that were $2,400 higher than planned. What is the expected effect on profit related to the additional sales?
179.Savane Enterprises sells a single product at a price of $57 per unit. Variable costs per unit are $35 and total fixed costs are $719,400. Savane is considering the purchase of new equipment that would increase fixed costs to $1,023,700, but decrease the variable cost per unit to $28.
a.If Savane expects to sell 40,000 units next year, should the company purchase this new equipment?
b.What would Savane’s volume have to be to change your recommendation in part a above?
180.Conviser Tools, Inc. produces tape dispensers. The selling price is $12 per dispenser. The variable cost of production is $4.80 per dispenser and the fixed cost per month is $20,448. For November, the company expects to sell 3,100 tape dispensers.
a.Calculate expected profit.
b.Calculate the margin of safety in dollars.
181.Sports To Go is organized into three departments. The following sales and cost data are available for the prior year:
WaterFootFieldTotal
Sales $160,000 $96,000 $150,000 $406,000
Less variable costs 64,000 42,000 84,000 190,000
Contribution margin 96,000 54,000 66,000 216,000
Less fixed costs 40,000 16,000 32,000 88,000
Profit $ 56,000 $ 38,000 $ 34,000 $128,000
a.What is Sports To Go’s weighted average contribution margin ratio? Round your percentage value to two decimal places.
b.What level of sales is needed for Sports to Go to earn a profit of $156,720 assuming the same ratio of units sold and same selling price per unit?
c.Sports To Go places an advertisement in the local paper each week. All else equal, which department would you emphasize in the advertisement?
182.Iggy’s Ice Pops produces two flavors of ice pops. Information regarding the products is summarized for the month of April below:
KiwiMelonTotal
Number of units 2,000 3,000 5,000
Sales revenue $3,000 $3,600 $6,600
Variable costs 1,500 900 2,400
Fixed costs 900 2,400 3,300
Profit $ 600 $ 300 $ 900
a.If Iggy’s sells 50 more kiwi pops, by how much will profit increase?
b.How much is Iggy’s weighted average contribution margin ratio?
c.What level of sales does Iggy’s need in order to earn a profit of $1,200 assuming the current sales mix? (Round to the nearest dollar.)
