loader  Loading... Please wait...

Question(s) / Instruction(s):

185.     Too Hot To Handle Company produces fireworks and has provided the following information:

               Total fixed costs      $100,000
               Unit variable costs      $6
               Planned unit sales      30,000

     The break even point is 25,000 units.

     Required:

     a.     Compute the selling price per unit.

     b.     Compute the contribution margin ratio.

     c.     Compute the break even volume in dollars.

     d.     Compute the margin of safety.

     
LEARNING OBJECTIVES 3 and 5

186.     The Yetmar Family Restaurant is open 24 hours per day serving breakfast, lunch, and dinner. Fixed costs are $24,000 per month. Variable costs are estimated at $9.60 per meal. The average total bill (excluding tax and tip) is $12 per customer.          

     Required:

     a.      Compute the number of meals that must be served if the Family Restaurant wishes to earn a profit before taxes of $6,000.

     b.     Compute the break even point in meals.

     c.     Compute the break even volume in dollars.

     d.     Assume that fixed costs increase to $30,000. How many additional meals must be served if the Yetmar Family Restaurant wishes to earn the same before-tax profit?

     

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$2.50

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494