Question

**Calculate the total fixed costs, the variable costs per
taco sold, and the number of tacos needed to sell in order to turn
a $2,000 profit according to the data given in class.**

*Total Fixed Costs: Add all fixed MONTHLY costs (break
down any annual costs to monthly)*

*Total Variable Costs: Add all variable PER UNIT costs
(break everything down to a cost per unit made or
sold)*

**Taco Stand Case Study:**

**Rent for your Stand - $600/month**

**Meat for 12 tacos - $3.00/lb**

**Cheese for 20 tacos - $2.00/lb**

**Liability Insurance - $200/month**

**10 taco shells - $1.00**

**Lettuce for 25 tacos - $.50/head of lettuce**

**Sauce Packet for 1 taco - $.10/packet**

**Taco wrapper for 1,000 tacos - $20/one-thousand
wrappers**

**Personal Health Insurance - $1,320/year**

*What are your fixed costs per month?**What are your variable costs per taco?**At a price of $1.50 per taco, how many tacos must you sell to make a $2,000 monthly profit??*

Answer #1

Bosco Company sells boxes of cookies and has total fixed costs
of $200,000 per month. Variable costs are $8 per box, selling price
is $10. The company desires to make a profit of $100,000 per month.
a. What is number of boxes that most be sold to break even each
month? b. What is the contribution margin ratio? c. What is the $
amount of monthly sales needed in order to make the desired monthly
profit

(a) Calculate marginal costs, total costs, average fixed costs,
average variable costs and average total costs, given the following
table. Fixed costs are $100.
Output
Total Variable Cost
Marginal Cost
Total Cost
Average Fixed Cost
Average Variable Cost
Average Total cost
0
0
1
60
2
90
3
110
4
150
5
230
6
450
7
610
8
810
(b) Between what levels of output is there increasing marginal
productivity?
(c) If labour were the only input to this production...

Metal Industries has monthly fixed costs totaling $90,000 and
variable costs of $5 per unit. Each unit of product is sold for
$20.
Assume the company expects to sell 11,850 units of product this
coming month. What is the margin of safety in units?
Group of answer choices
8,850
6,600
5,850
7,350
Tech Products, Inc. has monthly fixed costs totaling $90,000 and
variable costs of $5 per unit. Each unit of product is sold for
$20.
How many units must...

Lake Stevens Marina has estimated that
fixed costs per month are $350,000 and variable cost per dollar of
sales is $0.30.
What is the break-even point per month in sales dollars?
What level of sales dollars is needed for a monthly profit of
$70,000?
For the month of July, the marina anticipates sales of
$1,000,000. What is the expected level of profit?

Given the following information:
Selling Price (per unit): $10,000
Variable Costs (per unit): $7,000
Fixed Costs: $200,000
Required
Each of these are separate situations:
What is the break-even point in total sales in
dollars?
How many units need to be sold to make a profit of
$20,000?
How many units need to be sold to make a profit of
$20,000 if fixed costs increase from $200,000 to
$250,000?
How many units would they need to sell if they wanted
to...

In year 1 Frodo Company has variable costs of $80 per
unit, total fixed costs of $200,000, and a break-even point of
5,000 units. If the company raises the sales price per unit by $10
the following year, how many units must Frodo Company sell to break
even in Year 2?
A.
3,000 units
B.
4,000 units
C.
6,000 units
D.
5,000 units

Calculate the total variable cost per unit.
Variable cost per unit
Calculate the total fixed expense for the year.
Total fixed expense for the year
Operating income
Operating loss
Sales
Total contribution margin
Total fixed cost
Total variable cost
Head-First Company plans to sell 5,000 bicycle helmets at $75
each in the coming year. Product costs include:
Direct materials per helmet
$ 30
Direct labor per helmet
8
Variable factory overhead per helmet
4
Total fixed factory overhead
20,000
Variable...

Table 3
Dozens of eggs
Fixed Cost
Total Cost
Variable Costs
Average Variable Costs per dozen
Average Total Costs per dozen
0
$3.35
$3.35
n/a
n/a
n/a
10
$3.35
$10.50
$7.15
$0.72
$1.05
20
$3.35
$16.40
$13.05
$0.65
$0.82
30
$3.35
$23.10
$19.75
$0.66
$0.77
40
$3.35
$30.00
$26.65
$0.67
$0.75
50
$3.35
$36.50
$33.15
$0.66
$0.73
60
$3.35
$48.00
$44.65
$0.74
$0.80
70
$3.35
$64.40
$61.05
$0.87
$0.92
80
$3.35
$80.00
$76.65
$0.96
$1.00
90
$3.35
$135.00
$131.65
$1.46...

Number of canoes produced and sold
550
750
900
total costs
variable costs
104,500
142,500
171,000
fixed costs
198,000
198,000
198,000
total costs
302,500
340,500
369,000
cost per unit
variable cost per unit
190.00
190.00
190.00
fixed cost per unit
360.00
264.00
220.00
total cost per unit
550.00
454.00
410.00
Sandy Bank sells its canoes for $500 each.
Required:
1. Suppose that Sandy Bank raises its selling
price to $500 per canoe. Calculate its new break-even point in
units and...

Sales Price: $50.00 per unit Variable Costs: $20.00 per unit
Total Fixed Costs: $90,000 What is the break-even point in sales
dollars?

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