Question

*** ALL QUESTIONS MUST BE ANSWERED IN FULL DETAIL AS SPECIFICALLY REQUESTED -- IF YOU CANNOT ANSWER ALL PARTS OF ALL 3 QUESTIONS, PLEASE DO NOT ANSWER ***

**The Downstream Company rents kayaks and transports
kayaks and customers to and from their kayak trip on a local river.
The trip is priced at $20 per person and has a contribution margin
ratio of 30%. The company’s fixed expenses are $84,000. Last year,
sales were $400,000 and profit was $36,000.**

**a) Provide a definition for break-even analysis, and
ALSO explain how a manager would use break-even analysis to enable
more effective decision making when you compare your answers from
“item b” to “item c”, in the next section of this particular
problem.**

**b) Based on the information provided in this problem,
how many units need to be sold to break-even? Show all detailed
supporting calculations that were used to determine the final
number of units that need to be sold for this company to
break-even.**

**c) Based on the information provided in this problem,
how many units need to be sold to earn a target profit of $42,000?
ALSO you are required to show all detailed supporting
calculations that were used to determine the final number of units
that need to be sold for this company to earn a profit of
$42,000.**

Answer #1

Answer to B

Answer to A

Break even point is defined as the point where the company recovers all its costs and is in a no profit/no loss situation. Break even analysis helps a manager to determine the minimum quantum of sales it would require to recover all its costs. Further, this analysis also helps determine the quantum of sales required to earn a particular quantum of profit. This can be seen in the solution to B and C. Further, the break even point can be quoted in terms of quantity (units) or sale value

Please comment for any further clarifications

ALL QUESTIONS MUST BE ANSWERED -- PLEASE DO NOT ANSWER IF YOU
ARE UNABLE TO ANSWER ALL QUESTIONS.
ANSWERS TO A & B MUST BE IN NUMBER SENTENCE FORM WITH
SUPPORTING CALCULATIONS. ANSWERS CANNOT BE
PRESENTED IN TABLE FORM.
The Quality Corporation produces and sells a single
product. The following data refers to the year just
completed:
List of Account Titles
Beginning inventory
0
Units produced
9,000
Units sold
7,000
Selling price per unit
$
47
Selling and administrative expenses:...

CollegePak Company produced and sold 79,000 backpacks during the
year just ended at an average price of $39 per unit. Variable
manufacturing costs were $16.50 per unit, and variable marketing
costs were $3.78 per unit sold. Fixed costs amounted to $549,000
for manufacturing and $223,200 for marketing. There was no year-end
work-in-process inventory. (Ignore income taxes.)
Required:
Compute CollegePak’s break-even point in sales dollars for the
year. (Do not round intermediate calculations.
Round your final answer up to the nearest...

Note* I have answered the majority but need assitance with the
rest of the problem. Please start at 5a
Problem 5-23A Basics of CVP Analysis [LO5-1, LO5-3, LO5-4,
LO5-5, LO5-8]
Feather Friends, Inc., distributes a high-quality wooden
birdhouse that sells for $120 per unit. Variable expenses are
$60.00 per unit, and fixed expenses total $180,000 per year.
Required:
Answer the following independent questions:
1.
What is the product's CM ratio?
2.
Use the CM ratio to determine...

Required information
[The following information applies to the questions
displayed below.]
The Fashion Shoe Company operates a chain of women’s shoe shops
that carry many styles of shoes that are all sold at the same
price. Sales personnel in the shops are paid a sales commission on
each pair of shoes sold plus a small base salary.
The following data pertains to Shop 48 and is typical of the
company’s many outlets:
Per Pair of
Shoes
Selling price
$
40.00...

Please breakdown in detail to show my work QUESTION 2
Hollywood Films International (HFI) markets DVD's and videos
through a variety of retail outlets. Presently, HFI is faced with a
decision as to whether it should obtain the distribution rights to
an unreleased film titled "Touch of Tangerine". HFI estimates the
total market for the film to be 100,000 units. HFIs suggested
retail price for the DVD (i.e., the price at which the retailer
would sell the film to consumers)...

Mastery Problem: CVP Analysis - Constructing a
Cost-Volume-Profit Chart
CVP Analysis and the Contribution Margin Income
Statement
For planning and control purposes, managers have a powerful tool
known as cost-volume-profit (CVP) analysis. CVP analysis shows how
revenues, expenses, and profits behave as volume changes, which
helps identify problems and create solutions. In CVP analysis,
costs are classified according to behavior: variable or fixed,
rather than by category: product (which includes both variable and
fixed) or period (which includes both variable...

Mastery
Problem: CVP Analysis - Constructing a Cost-Volume-Profit
Chart
CVP Analysis
and the Contribution Margin Income Statement
For planning and
control purposes, managers have a powerful tool known as
cost-volume-profit (CVP) analysis. CVP analysis shows how revenues,
expenses, and profits behave as volume changes, which helps
identify problems and create solutions. In CVP analysis, costs are
classified according to behavior: variable or fixed, rather than by
category: product (which includes both variable and fixed) or
period (which includes both variable...

Notes: Requested info from Excel file must be copied/pasted (as
picture) to Word File. Neatness matters, the sloppy presentation
will be penalized even if your answers are correct.
Snow White and the Seven Dwarfs
Snow White Corporation makes is well known for making children’s
toy products. Presently the firm is planning to develop an optimal
production schedule to manufacture seven of their popular products
- Grumpy, Dopey, Doc, Happy, Bashful, Sneezy, and
Sleepy. Relevant product information is provided
below....

Suppose you have decided to start a business producing and
selling a product of your choice from the following options: custom
birthday cakes, lawn mowers or sports jackets.
For your essay, answer the following questions related to your
product:
Briefly describe the product you would produce and sell. What
market will you target this product for? At what price would you
sell your product? Make a projection of your sales in units for the
first year of operations.
Make a...

[The following information applies to the questions
displayed below.]
Oslo Company prepared the following contribution format income
statement based on a sales volume of 1,000 units (the relevant
range of production is 500 units to 1,500 units):
Sales
$
30,000
Variable expenses
16,500
Contribution margin
13,500
Fixed expenses
7,830
Net operating income
$
5,670
1. If the selling price increases by $2 per unit and the sales
volume decreases by 100 units, what would be the net operating
income?
2....

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