Question

Heather Hudson makes stuffed teddy bears. Recent information for her business follows:     Selling price per bear...

Heather Hudson makes stuffed teddy bears. Recent information for her business follows:    

Selling price per bear $ 29.00
Total fixed cost per month 2,295.00
Variable cost per bear 12.00


If she sells 288 bears next month, determine the margin of safety in units, sales dollars, and as a percentage of sale.(Round your intermediate calculations to the nearest whole number and round your "Percentage of Sales" answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))


Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear...
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 33.50 Total fixed cost per month 1,470.00 Variable cost per bear 16.50 She sells 410 bears this month. Suppose sales increase by 30 percent next month. Calculate the effect that increase will have on her profit. (Round your intermediate calculations to 2 decimal places. Round your final answer to 1 decimal place. (i.e. .123 should be entered as 12.3%))
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear...
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 28.50 Total fixed cost per month 1,380.00 Variable cost per bear 15.50 She sells 390 bears this month. Suppose sales increase by 20 percent next month. Calculate the effect that increase will have on her profit. (Round your intermediate calculations to 2 decimal places. Round your final answer to 1 decimal place. (i.e. .123 should be entered as 12.3%)) Increased in Profit %
Dana’s Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette...
Dana’s Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette $ 1.20 Sales price per rosette 3.00 Total fixed costs per month 3600.00 Required: 1. Suppose Dana’s would like to generate a profit of $860. Determine how many rosettes it must sell to achieve this target profit. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) 2. If Dana’s sells 2,450 rosettes, compute its margin of safety...
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.31...
Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 14.31 Variable cost per cake Ingredients 2.18 Direct labor 1.03 Overhead (box, etc.) 0.27 Fixed cost per month $ 3,790.50 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: (Round your answer to the nearest whole number.) a. Sales price increases by $1.80 per cake. b. Fixed costs increase by $495 per month. c. Variable costs decrease by $0.44 per...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:      Number...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:      Number of bikes produced and sold 500 820 960 Total costs Variable costs $ 118,500 $ ? $ ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? $ 518.75 ?       Required: 1. Complete the table. (Round your "Cost...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Number of bikes produced and sold 480 820 970 Total costs Variable costs $ 115,680 $ ? $ ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? $ 534.75 ? Required: 1. Complete the table. (Round your "Cost per Unit"...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:      Number...
Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:      Number of bikes produced and sold 520 800 920 Total costs Variable costs $ 121,160 $ ? $ ? Fixed costs per year ? ? ? Total costs ? ? ? Cost per unit Variable cost per unit ? ? ? Fixed cost per unit ? ? ? Total cost per unit ? $ 508.75 ?       Required: 1. Complete the table. (Round your "Cost...
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes...
Riverside Inc. makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold 550 750 900 Total costs Variable costs $ 107,250 $ 146,250 $ 175,500 Fixed costs 247,500 247,500 247,500 Total costs $ 354,750 $ 393,750 $ 423,000 Cost per unit Variable cost per unit $ 195.00 $ 195.00 $ 195.00 Fixed cost per unit 450.00 330.00 275.00 Total cost per unit $ 645.00 $ 525.00 $ 470.00 Riverside sells its canoes for...
Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost,...
Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow: Hawaiian Fantasy Tahitian Joy Selling price per unit $ 12 $ 120 Variable expenses per unit $ 9 $ 48 Number of units sold annually 36,000 5,400 Fixed expenses total $437,000 per year. Required: 1. Assuming the sales mix given above, do the following: a. Prepare a contribution format income statement showing both dollar and percent...
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the...
Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price per unit $ 25 Variable expense per unit $ 18 Fixed expense per month $ 6,020 Unit sales per month 1,010 Required: 1. What is the company’s margin of safety (in dollars)? (Do not round intermediate calculations.) 2. What is the company’s margin of safety as a percentage of its sales? (Round your percentage answer to 2...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT