Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $12,690. The booth will be open 27 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $180 per package. She will continue to sell the existing product, EZRecords, which costs $103 per package. Ms. Ortega believes that the salesperson will spend approximately 17 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 72 units of EZRecords and 45 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 202 units of EZRecords and 101 units of ProOffice. Note: For all requirements, round "Cost per unit" to 2 decimal places.
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- Janet Garcia is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $8,700. The booth will be open 29 hours during the trade show. Ms. Garcia also plans to add a new product line, ProOffice, which will cost $190 per package. She will continue to sell the existing product, EZRecords, which costs $93 per package. Ms. Garcia believes that the salesperson will spend approximately 19 hours selling EZRecords and 10 hours marketing ProOffice. Required: a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 86 units of EZRecords and 58 units of ProOffice. (Round "Cost per unit" answers to 2 decimal places.) EZRecords ProOffice Total cost of sales Cost per unit b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 199 units…Xia-Ming is considering the expansion of her picture-framing camera business to include the printing of oversize pictures from CDs. She would need to lease equipment, at a cost of $66 per month. To process the pictures, she estimates that she would have supplies expenses of $4 per picture. Xia-Ming estimates that she can sell 60 pictures per month. (a) What price should she charge to break even? (b) Compute the break-even point in sales dollars. The picture frames should be sold for $ to break even. (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Ask my instructor по C U MB 1 100 U Clear all Check answer TUF GAMING JYSKO PRISCHaving recently graduated with a visual arts degree, Zane is considering starting a new business in this field, selling exotic artwork. He believes he can sell each piece of artwork for an average price of $600. The suppliers of the artwork will be paid a commission of 25% of the price. Artwork will be packed and delivered to the customer. Zane estimates that packing and delivery costs should be about $30 per product. There will be additional expenses associated with running the store. Rent will be $5,400 per month. Utilities (which it is assumed will not vary from month to month) will be $990 per month. Insurance and other expenses will be $750 per month. He plans to pay himself and one sales assistant salaries of $10,500 per month ($7,500 for himself and $3,000 for his assistant). The tax rate is assumed by Zane to be 30%. Required: a. Based on the information how many pieces of artwork per month would Zane need to sell to break even? Show all workings. b. If Zane wanted to earn a…
- Marcus Allen is evaluating a business opportunity to sell premium car wax at vintage car shows. The wax is sold in 64-ounce tubs. Marcus can buy the premium wax at a wholesale cost of $29 per tub. He plans to sell the premium wax for $84 per tub. He estimates fixed costs such as travel costs, booth rental cost, and lodging to be $880 per car show. Requirement 1. Determine the number of tubs Marcus must sell per show to break even. Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Units sold Sales in units Marcus must sell tubs per show to breakeven. Requirement 2a. Determine the sales volume in units necessary to earn the desired profit assuming Marcus wants to earn a profit of $1,320 per show. Marcus must sell tubs per show to earn a profit of $1,320 per show. b. Determine the sales volume in dollars necessary to earn the desired profit assuming Marcus wants to earn a profit of 1,320 per show.…Delta Sonic, a chain of full service automotive detailers, is considering introducing a new 15-minute car wash and wax service at one of its Chicago locations. The company expects that sales from the new 15-minute service will be $145,000 per year. Delta Sonic currently offers a 1-hour wash/wax/detail service with annual sales of $267,500. While many of the 15-minute sales will be to new customers who, in the past, could not wait a full hour to have their car detailed, Delta Sonic estimates that 10% of their 1-hour sales will be lost as a result of existing customers switching to the new, faster service. The level of incremental sales associated with introducing the new 15-minute wash/wax service that should be used when analyzing this project is closest to O A. $171,750 B. $14,500 C. $145,000 O D. $26,750 O E. $118,250Scrooge McDuck Safe Limited is considering buying the hinges it uses in the manufacture of vaults from an outside vendor. Currently, Scrooge McDuck Safe Limited makes the hinges in its own manufacturing facility. Scrooge McDuck Safe Limited can buy the hinges for $1.50 each. The company uses 900,000 hinges each year. Fixed cost for Scrooge McDuck Safe Limited would not change if the company stopped making the hinges. Information about Scrooge McDuck Safe Limited's cost to manufacture the 900,000 casters follows: Per Unit $.50 .10 Total Direct material $450,000 90,000 360,000 225.000 $1,125,000 Direct labor Variable overhead Fixed overhead Total .40 25 $1.25 Required: A. Prepare a relevant cost schedule that indicates whether Scrooge McDuck Safe Limited should buy the hinges or continue to make them. B. If Scrooge purchased the hinges, management has approached you that a dial producer wishes to rent the vacant space for $150,000 to produce their dials. Does this change your decision??…
- Carol is starting a virtual craft workshop business. Currently she is planning to have 3 different workshops to offer. Carol's Crafts plans to call each workshop a "party". She has already experimented with Party A where she charges $45 per guest. Carol's has been hosting 40 guests per week. Her variable costs for Party A are $600 per week. Carol has fixed costs of $7, 000 and knows that her fixed costs will not increase if she can host more "parties" each week. Carol plans to add Party B and Party C to her weekly workshop schedule. Party B will feature a smaller kid's craft with a Workshop fee of $25 per guest and variable costs of $15. Party C will be a weekly craft club with a club fee of $60 guest and variable costs of $20. Carol plans a party mix with a ratio of 1 Party B for every 2 Party Cand 7 Party A for every Party B. (7:1:2). Carol plans to host 250 guests each week at parties. Based on this information please help Carol predict her potential net income to see if she can…FEX, a grocery store, is considering offering one-hour photo developing in their store. The firm expects that sales from the new one-hour machine will be $139,000 per year. FEX currently offers overnight film processing with annual sales of $90,000. While FEX expects that many of the one-hour photo sales will be to new customers, it also expects that most of the old customers will switch to the new one-hour machine. Specifically, FEX estimates that 75% of their current overnight photo customers will switch and use the one-hour service. Given these expectations, the level of incremental sales associated with introducing the new one hour photo service is closest to O $206,500 O $36,300 O $71,500 $139,000 O $121,800 O $94,800Marquette has an opportunity to sell its product through an online retailer. To begin selling through this online platform, they are required to ship 2,000 units to the retailers’ order fulfillment warehouse. The other condition of this offer is that they pay a one-time vendor marketing fee of $5,000. To get the units to the fulfillment warehouse by the deadline Marquette will need to pay for expedited shipping at a cost of $10 per unit. What is the minimum price Marquette should charge the retailer for this initial order of 2,000 units? (Show all supporting calculations). (NOTE: ignore taxes or other costs not specifically mentioned in the questions.)
- Ingrid is planning to expand her business by taking on a new product that costs $7.56. In order to market this new product, $1307.00 must be spent on advertising. The suggested retail price for the product is $11.31. (a) If a price of $14.49 is chosen, how many units does she need to sell to break even? (b) If advertising is increased to $1674.00, and the price is kept at $11.31, how many units does she need to sell to break even?Trask Inc. and Vice Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Trask needs the machine for 1,000 hours and Vice needs it for 750 hours. If each company rents the machine on its own, the fee will be $90 per hour of usage. If they rent the machine together, the fee will decrease to $85 per hour of usage. Read the requirements Requirement 1, Calculate Trask's and Vice's respective share of fees under the stand-alone cost-allocation method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar) Incremental Trask primary user Vice primary user Trask Stand-alone Requirement 2. Calculate Trask's and Vice's respective share of fees using the incremental cost-allocation method assuming (a) Trask ranked as the primary party and (b) Vice ranked as the primary party. (Do not round intermediary calculations. Only round the amount you input…Tupper Inc. and Victory Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Tupper needs the machine for 950 hours and Victory needs it for 700 hours. If each company rents the machine on its own, the fee will be $85 per hour of usage. If they rent the machine together, the fee will decrease to $80 per hour of usage. Read the requirements. Requirements 1. Calculate Tupper's and Victory's respective share of fees under the stand-alone cost-allocation method. 2. Calculate Tupper's and Victory's respective share of fees using the incremental cost-allocation method assuming (a) Tupper ranked as the primary party and (b) Victory ranked as the primary party. 3. Calculate Tupper's and Victory's respective share of fees using the Shapley value method. 4. Which method would you recommend Tupper and Victory use to share the fees? - X